Diane Gifted 100 Shares of Runners Link Common Stock with a FMV

question 74

Multiple Choice

Diane gifted 100 shares of Runners Link common stock with a FMV of $8,000 to her brother,Sean.The stock originally cost Diane $11,000.Sean later sells the stock on the open market for $9,000.Sean recognizes:

• A)no gain or loss.
• B)a $2,000 loss.
• C)a $2,000 gain.
• D)a $1,000 gain.

Distinguish between separate and community property.

Recognize the role and purpose of a guardian ad litem in legal proceedings involving children.

Understand the concept of visitation rights and how they apply to noncustodial parents and extended family.

Know the prerequisites and considerations in child custody awards by the court.

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Definitions:

Self-employed

An individual who works for themselves and does not have an employer withholding taxes from their paycheck.

Deductible Keogh Contribution

Contributions to a retirement plan for self-employed individuals or unincorporated businesses, allowing for tax deductions.

Traditional IRA

A type of retirement account that offers tax-deferred growth, with taxes being paid only upon withdrawal in retirement.

Distributions

Money paid out to shareholders from a corporation's earnings or a fund's assets.