Julie received stock as a gift from her mother in June 2022 (no gift tax was paid). Her mother hadpaid $5,000 for the stock 3 years ago, and had held the stock as an investment. At the time of thegift, the stock had a FMV of $10,000. In September 2022, Julie (who also held the stock as aninvestment) sold the stock for $9000. What is the amount and character of the gain/loss recognizedby Julie as a result of the sale? $4,000 long-term capital gain $1,000 short-term capital loss $1.000 long-term capital loss $4,000 short-term capital gain
Julie received stock as a gift from her mother in June 2022 (no gift tax was paid). Her mother hadpaid $5,000 for the stock 3 years ago, and had held the stock as an investment. At the time of thegift, the stock had a FMV of $10,000. In September 2022, Julie (who also held the stock as aninvestment) sold the stock for $9000. What is the amount and character of the gain/loss recognizedby Julie as a result of the sale? $4,000 long-term capital gain $1,000 short-term capital loss $1.000 long-term capital loss $4,000 short-term capital gain
Chapter14: Property Transactions: Determination Of Gain Or Loss And Basis Considerations
Section: Chapter Questions
Problem 7CPA
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Julie received stock as a gift from her mother in June 2022 (no gift tax was paid). Her mother hadpaid $5,000 for the stock 3 years ago, and had held the stock as an investment. At the time of thegift, the stock had a FMV of $10,000. In September 2022, Julie (who also held the stock as aninvestment) sold the stock for $9000. What is the amount and character of the gain/loss recognizedby Julie as a result of the sale?
$4,000 long-term
$1,000 short-term capital loss
$1.000 long-term capital loss
$4,000 short-term capital gain
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