Curt Owns the Following Assets Which He Gives to His

question 50

Multiple Choice

Curt owns the following assets which he gives to his daughter Carla in 2009 (no gift tax results) .

Both items have been held by Curt as an investment for more than one year.If Carla immediately sells these assets for $1 million ($400,000 + $600,000) ,she recognizes:

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

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Definitions:

Equivalent

Identical in worth, quantity, role, significance, or rank.

Equivalent Values

Items or amounts that are equal in value, function, or meaning.

Scheduled

Planned or arranged for a specific time or sequence of events.

Two-Month Intervals

Time periods that occur or are calculated every two months.