Mother purchased 100 shares of High Dive Inc. common stock years ago for $15,000. It now has a fair market value (FMV) of $12,000.

Mother purchased 100 shares of High Dive Inc. common stock years ago for $15,000. It now has a fair market value (FMV) of $12,000. Despite its current value, Mother sells the stock to her daughter for $4,000. Mother paid no gift tax on the bargain sale because the gift element of the transaction (the difference between the stock’s current FMV and the purchase price) qualified for the annual gift tax exclusion. The stock declines in value and the daughter sells it for $8,000. How much is daughter’s basis for figuring her loss?

 A.$4,000 

Don't use plagiarized sources. Get Your Custom Essay on
Mother purchased 100 shares of High Dive Inc. common stock years ago for $15,000. It now has a fair market value (FMV) of $12,000.
Just from $13/Page
Order Essay

B.$8,000

 C.$12,000 

D.$15,000

Order your essay today and save 20% with the discount code: GREEN

Order a unique copy of this paper

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
$26
Top Academic Writers Ready to Help
with Your Research Proposal
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code GREEN