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Kimberly gave 100 shares of stock to her 24-year-old son, Brandon. Kimberly purchased the stock 9 months ago for $10 per share. On the gift
Kimberly gave 100 shares of stock to her 24-year-old son, Brandon. Kimberly purchased the stock 9 months ago for $10 per share. On the gift date, the stock was worth $40 per share. Two months later, Brandon sells the 100 shares of stock for $60 per share. Kimberly and Brandon are in the 24 percent and 10 percent marginal tax brackets, respectively. How much family tax savings is achieved through this transaction?
A. | $600
| |
B. | $1,200 | |
C. | $700 | |
D. | $920 |
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