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Question 16. On February 15, 2023, Hank gave some stock shares to his niece Sarah, which Sarah used for investment purposes. Hank purchased the
Question 16. On February 15, 2023, Hank gave some stock shares to his niece Sarah, which Sarah used for investment purposes. Hank purchased the stock 4 years ago for $25,000; and the fair market value at the date of the gift was $20,000. On October 2, 2023, Sarah sold the stock for proceeds of $18,000. What is Sarah's recognized loss, and how is it characterized? ($7,000) long-term capital loss ($7,000) short-term capital loss ($2,000) long-term capital loss ($2,000) short-term capital loss
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