Question
On February 9, 2016, Harry sold stock with a cost of $12,000 to his sister Florine for $7,000, its fair market value. On July 30,
On February 9, 2016, Harry sold stock with a cost of $12,000 to his sister Florine for $7,000, its fair market value. On July 30, 2021, Florine sold the same stock for $16,200 to a friend in a bona fide transaction. What is the proper treatment in 2021 for these transactions?
Neither Harry nor Florine has a recognized gain or loss. | ||
Harry has a recognized loss of $5,000. | ||
Florine has a recognized gain of $4,200. | ||
Florine has a recognized gain of $9,200. |
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South-Western Federal Taxation 2020 Comprehensive
Authors: David M. Maloney, William A. Raabe, James C. Young, Annette Nellen, William H. Hoffman
43rd Edition
357109147, 978-0357109144
