11. Simon owns stock that has declined in value since acquired. He has decided either to give the stock to his nephew, Fre proceeds. If Fred receives the stock, he will sell it to obtain the proceeds. Simon is in the 15% tax bracket, while Fred's bra holding period for the stock will be short term. Identify the tax issues relevant to Simon in deciding whether to give the st Fred. For gift property, the loss basis to the donee is the lower of (1) the donor's adjusted basis, or (2) the fair market val Therefore, since Fred cannot take advantage of the loss, Simon should sell the stock, deduct the realized loss, and