Margaret Died on September 16, 2018, When She Owned Securities

question 1610

Multiple Choice

Margaret died on September 16, 2018, when she owned securities with a basis of $50,000 and a FMV of $60,000. Caroline inherited the property and sold it on December 19, 2018 for $67,000. What is Caroline's reported gain on this sale?

• A) $7,000 STCG
• B) $17,000 LTCG
• C) $7,000 LTCG
• D) $17,000 STCG

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Definitions:

Personal Taxes

Taxes levied on the income or property of individuals.

Personal Income

The total earnings of an individual from all sources before taxes, including wages, dividends, interest, and rents.

Federal Government

the national government of a federal state, which shares power with regional or state governments under a system of federalism.

Individual Income

The total amount of money earned by a person from all sources before taxes.