Terry Receives Investment Property from Her Mother as a Gift

question 66

Multiple Choice

Terry receives investment property from her mother as a gift in 2016.Her mother paid $15,000 for the property in 2011,and it is valued at $18,000 on the date of the gift.Terry sells the property eight months later for $16,000.Terry's gain or loss is

• A)Short-term ordinary loss.
• B)Short-term capital gain.
• C)Short-term capital loss.
• D)Long-term ordinary gain.
• E)Long-term capital gain.

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Definitions:

Obese

A medical condition characterized by excess body fat that presents significant risks to health and wellbeing.

Excessive Birth Weight

A condition in which a newborn's weight is significantly higher than the average for their gestational age.

Amniotic Fluid

The protective liquid contained within the amniotic sac of a pregnant female, surrounding and cushioning the fetus throughout its development.

Mother's Blood

The circulatory system of a pregnant woman that provides oxygen and nutrients to the fetus through the placenta and carries away fetal waste products.