Paul sold TLC stock valued at $22,000 to his son, Sam, for $12,000. Pau's bani following is correct? O Paul reports a gift of $22,000 on Form 709 and a capital loss of $10,000 ($12 in the stock basis in the stock is $12,000. No reporting is required because the transfer was between immediate family members Paul is not required to report the $10,000 gift($22,000-$12,000) and is not allowed to deduct the $5000 oss ($12 $17,000 basis). If Sam sells the stock, his basis for gain is $17,000 and his basis for loss is $12.000. is in the stock is $17.000. Whic $12.000-$22 $17 O $22.000) on Form 1040. Sam's O Paul reports a gift of $22.000. Sam's basis in the stock is $12,000