On July 25,2016,Karen Gives Stock with a FMV of $7,500

question 39

Multiple Choice

On July 25,2016,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 18,2016.Bill sold the stock on April 18,2017 for $6,000.As a result of the sale,what must Bill report on his 2016 tax return?

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