Curt Has Owned the Following Assets for a Number of Years

question 110

Multiple Choice

Curt has owned the following assets for a number of years which he gives to his daughter Carla. No gift tax results. Fair Market
$\begin{array} { c c } &\text { Basis } & \text { Value } \\ \text { Land }&\$ 200,000 & \$ 400,000 \\ \text { Securities }&800,000 & 600,000 \end{array}$ If Carla immediately sells these assets for $1 million $400,000 + $600,000) , she recognizes:

• A) No gain or loss.
• B) A $200,000 LTCG and no loss.
• C) A $200,000 STCG and $200,000 STCL.
• D) A $200,000 STCG and no loss.
• E) A $200,000 LTCG and $200,000 LTCL.

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Definitions:

Duty

An obligation or responsibility expected of an individual or entity.

Patterns of Activity

Regular behaviors or actions that are characteristic of an individual or group, usually observed over a period of time.

Everyday Activities

Routine actions or tasks that individuals perform in their daily lives.

Social Capital

The networks, norms, and social trust that facilitate coordination and cooperation among individuals within a society or group.