Question 70 of 75. Paul sold TLC stock valued at $22,000 to his son, Sam, for $12,000. Paul's basis in the stock is $17,000. Which of the following is correct? Paul reports a gift of $22,000 on Form 709 and a capital loss of $10,000 ($12,000 - $22.000) on Form 1040. Sam's 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 $5,000 loss ($12,000 - $17.000 basis). If Sam sells the stock, his basis for gain is $17,000, and his basis for loss is $12,000. Paul reports a gift of $22,000. Sarris basis in the stock is $12.000 Mark for follow up A gift that might otherwise be viewed as a future interest in a trust can be treated as a present interest gift if: The beneficiary has the right to contribute to the trust. The beneficiary has the right to withdraw a contribution (gift) from the trust. The beneficiary has the right to make income distributions to the trust. The beneficiary has the right to make corpus contributions to the trust. Mark for follow up