On July 25, 2017, Karen Gives Stock with a FMV

question 1695

Multiple Choice

On July 25, 2017, Karen gives stock with a FMV of $7,500 and a basis of $8,000 to her nephew Bill. Karen had purchased the stock on March 18, 2017. Bill sold the stock on April 18, 2018 for $6,000. As a result of the sale, what must Bill report on his 2018 tax return?

• A) ($2,000) LTCL
• B) ($1,500) LTCL
• C) ($1,500) STCL
• D) ($2,000) STCL

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Definitions:

Simple Random Samples

Samples drawn in such a way that every member of the population has an equal chance of being selected, ensuring that the sample represents the population well.

Proportion

A statistic that measures the fraction of the total number of items in a set that are of a particular category or characteristic.

Poisson Distribution

A probability distribution that describes the occurrence of rare events or the number of events in fixed intervals of time or space.

Probability

A measure of the likelihood that an event will occur, expressed as a number between 0 and 1.