Cruella Sly's daughter has asked Cruella for $20,000 as soon as possible to pay off some gambling debts. Cruella has no cash or cash equivalent assets to give to her daughter, but she does have the following unmortgaged assets:

Asset

Basis

FMV

Publicly traded stocks

$45,000

$35,000

Rental real estate

$60,000

$80,000

Municipal bonds

$25,000

$30,000

Rental equipment

$40,000

$60,000

Cruella is in the highest marginal income tax bracket, and her daughter is in the lowest. While Cruella wants to help her daughter, she wants to do so in a way that will have the least negative impact on herself from a tax and standard of living standpoint. The rental equipment was recently purchased and is generating significant depreciation deductions.

Which one of the following is the most appropriate property for Cruella to gift to her daughter?

the equipment

the real estate

the bonds

the stocks