Question
Hall, a divorced person and custodian of her 12-year-old child, filed her Year 9 federal income tax return as head of household. She submitted the
Hall, a divorced person and custodian of her 12-year-old child, filed her Year 9 federal income tax return as head of household. She submitted the following information to the CPA who prepared her Year 9 return: In June, Year 9, Hall's mother gifted her 100 shares of a listed stock. The donor's basis for this stock, which she bought in Year 1, was $4,000, and market value on the date of the gift was $3,000. Hall sold the stock in July, Year 9 for $3,500. The donor paid no gift tax. What was Hall's reportable gain or loss in Year 9 on the sale of the 100 shares of stock gifted to her? (Points : 4) $0 $500 gain $500 loss $1,000 loss
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