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Brittany Callihan sold stock (basis of $184,000) to her son, Ridge, for $160,000, the fair market value. a. WhatarethetaxconsequencestoBrittany? b. What are the tax consequences
Brittany Callihan sold stock (basis of $184,000) to her son, Ridge, for $160,000, the fair market value. a. WhatarethetaxconsequencestoBrittany? b. What are the tax consequences to Ridge if he later sells the stock for $190,000? For $152,000? For $174,000? c. Write a letter to Brittany in which you inform her of the tax consequences if she sells the stock to Ridge for $160,000. Explain how a sales transaction could be structured that would produce better tax consequences for her. Brittanys address is 32 Country Lane, Lawrence, KS 66045.
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