Under the Terms of Their Divorce Agreement Executed in August

question 119

Multiple Choice

Under the terms of their divorce agreement executed in August of this year, Clint transferred Beta, Inc. stock to his former wife, Rosa, as a property settlement. At the time of the transfer, the stock had a basis to Clint of $55,000 and a fair market value of $68,000. Rosa subsequently sold the stock for $75,000. What is the tax consequence of first the stock transfer and then the stock sale to Rosa?

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Definitions:

Hospice Care

A model of medical care designed to provide comfort and support to patients and their families during the end stages of a terminal illness.

Acute Care Hospitals

Acute care hospitals are healthcare facilities that provide immediate medical attention for severe, episodic conditions, surgical procedures, or recovery from acute illness or surgery.

Hospice Programs

Care programs designed to provide comfort and support to patients and their families during the final phase of a terminal illness, focusing on palliative care rather than curative treatment.

Volunteer

An individual who offers services or contributes efforts of their own free will without financial compensation.