Assume that this year, Clara decides to sell the stock she inherited from Tim that now has a fair market value of $24,000. She directs the broker to make the check payable to her sons, George and Vince because she does not need the extra income from the sale. What are the tax consequences to Clara, George, and Vince as a result of this stock sale in the year of the sale? CHOOSE ALL that apply.

Assume that this year, Clara decides to sell the stock she inherited from Tim that now has a fair market value of $24,000. She directs the broker to make the check payable to her sons, George and Vince because she does not need the extra income from the sale. What are the tax consequences to Clara, George, and Vince as a result of this stock sale in the year of the sale? CHOOSE ALL that apply. Clara must report the sale of the stock on her income tax return. She will be responsible for any income taxes due on the capital gain. The gift to Vince and George will not be subject to gift tax because it is less than the annual exclusion amount. The gift to Vince and George will be subject to gift tax If she wants the children to pay the income taxes, she would need to transfer the shares before they are sold