Question
1. John buys shares of stock in Acme Corp. on January 1, 2018 for $50. He gifts the stock to Mary on July 1, 2018
1. John buys shares of stock in Acme Corp. on January 1, 2018 for $50. He gifts the stock to Mary on July 1, 2018 when the stock has a fair market value (fmv) of $60. Mary sells the stock on September 1 , 2018 for $80.
a. What is the gain /loss recognized by John? ______________
What is the character of the gain/loss? _____________
b. What is the gain /loss recognized by Mary? ______________
What is the character of the gain/loss? _____________
2. Same facts as in Question 1 except the value of the shares when the gift is made is $40.
a. What is the gain /loss recognized by John? ______________
What is the character of the gain/loss? _____________
b. What is the gain /loss recognized by Mary? ______________
What is the character of the gain/loss? _____________
3. Same facts as in Question 1 except Mary Sells the stock on May 1, 2019.
a. What is the gain /loss recognized by John? ______________
What is the character of the gain/loss? _____________
b. What is the gain /loss recognized by Mary? ______________
What is the character of the gain/loss? _____________
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The Life Audit Take Control Of Your Life Now Every Minutes Counts
Authors: Caroline Righton
1st Edition
978-0340836781
