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Under the terms of their divorce agreement executed in August of this year, Donny transferred Omega, Inc. stock to his former wife, Marie, as a
Under the terms of their divorce agreement executed in August of this year, Donny transferred Omega, Inc. stock to his former wife, Marie, as a property settlement. At the time of the transfer, the stock had a basis to Donny of $78,000 and a fair market value of $88,000. Marie subsequently sold the stock for $95,000. What is the tax consequence of first the stock transfer and then the stock sale to Marie
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