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Four years ago, Emily, a single taxpayer, acquired stock in a corporation that qualified as a small business corporation under 1 2 4 4 ,

Four years ago, Emily, a single taxpayer, acquired stock in a corporation that qualified as a small business corporation under 1244, at a cost of $60,000. Emily wants to give her son, Carter, $20,000 to help finance Carters college education. The stock is currently worth $20,000. Emily is considering selling the stock in the current year for $20,000 and giving the cash to Carter. As an alternative, Emily could give the stock to Carter and let Carter sell it for $20,000. Which alternative should Emily choose?

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