Perry Inherits Stock from His Aunt Margaret That Had a Basis

question 59

Essay

Perry inherits stock from his Aunt Margaret that had a basis of $40,000 to Margaret and a fair market value of $54,000 on May 20,2016,the date of her death.Paul sells the stock on June 21,2016 for $65,000.What is the amount and character of the gain or loss on the sale?

---

Definitions:

Arachnoid Mater

A delicate membrane that encompasses the brain and spinal cord, situated between the dura mater and the pia mater, part of the meninges.

Dura Mater

The outermost, tough layer of the meninges that surround and protect the brain and spinal cord.

Outermost

Situated farthest away from the center or from a reference point.

Pia Mater

The delicate innermost layer of the meninges, the membranes surrounding the brain and spinal cord.