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A taxpayer gifted stock held for two years to the taxpayer's adult child. The taxpayer's basis was $120,000 and the fair market value of the

A taxpayer gifted stock held for two years to the taxpayer's adult child. The taxpayer's basis was $120,000 and the fair market value of the stock at the time of the gift was $125,000. Six months later, the taxpayer's child sold the stock for $110,000. What is the amount and character of the gain (loss), if any, to be reported on the child's tax return? 

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