1) Priya has a $15,000 capital loss this year. She is thinking about selling some investments that have a large gain prior to year-end in order to offset $12,000 of that loss. Should she sell, or not?

Compare these two cases.

• Ron received A T&T stock upon the death of his grandfather. The stock cost his grandfather $6,000 forty years ago and was worth $97,000 on the date of his grandfathers death.

• Jane received a gift of stock from her mother. The stock cost her mother $9,000 five years ago and was worth $6,500 on the date of the gift.

1) How are they different?

2) What is the cost basis for each?