Tracy Gave Stock with an Adjusted Basis of $18,000 and an FMV

question 98

Multiple Choice

Tracy gave stock with an adjusted basis of $18,000 and an FMV of $15,000 to her nephew Phil. No gift tax was paid. Phil sold the stock for $16,000. The gain or loss Phil will recognize on the sale is

• A) $0.
• B) $1,000 gain.
• C) $1,500 loss.
• D) none of the above

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Definitions:

Psychiatrists

Medical doctors specializing in the diagnosis, treatment, and prevention of mental health disorders.

Clinical Psychologists

Psychologists who specialize in the diagnosis and treatment of psychological disorders and everyday behavioral problems.

Counseling Psychologists

Professionals who specialize in providing guidance and support to individuals or groups to improve their mental health and well-being.

Mental Health Services

A spectrum of services, from counseling and psychotherapy to psychiatric care, aimed at supporting individuals' mental health and well-being.