Landon has several pieces of property valued at $$30,000$ that he wants to give away. He wants to make gifts that make sense for both himself and for the recipient. He wants to give gifts to his father, Preston $($who is in a low marginal income tax bracket$),$ his sister, Tabitha, his daughter, Kelcie, and to the United Way. Match the properties to the best recipient considering he would like to keep one asset.

Question $11$Answer

a$.$

Stock with a FMV of $$30,000$ and an adjusted basis of $$12,000.$ The stock has a dividend yield of $3\%$ and is expected to appreciate $9\%.$

b$.$

Stock with a FMV of $$30,000$ and an adjusted basis of $$25,000.$ The stock has a dividend yield of $7\%$ and is expected to appreciate $14\%.$

c$.$

Stock with a FMV of $$30,000$ and an adjusted basis of $$45,000.$ The stock has a dividend yield of $0\%$ and is expected to appreciate $4\%.$

d$.$

Real Estate with a FMV of $$30,000$ and an adjusted basis of $$27,000.$ The real estate is expected to appreciate $8\%.$