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Ramon received a gift of stock from his uncle. The basis of the stock to his...

Ramon received a gift of stock from his uncle. The basis of the stock to his uncle was $25,000, and it had a FMV of $18,000 at the date of the gift. The donor held the property for more than one year. Complete the following chart under the independent situations shown: - Use current tax laws

Situation 1 Situation 2 Situation 3
Donor’s basis $25,000 $25,000 $25,000
FMV at gift date  18,000  18,000  18,000
Ramon’s selling price  30,000  15,000  20,000
Basis to Ramon ——–— ——–— ——–—
Taxable gain (if any) ——–— ——–— ——–—
Deductible loss (if any) ——–— ——–— ——–—
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Situation 1 Situation 2 Situation 3
Donor's Basis $25,000 $25,000 $25,000
FMV at gift date $18,000 $18,000 $18,000
Romon's selling price $30,000 $15,000 $20,000
Basis to Romon $25,000 $18,000 N/A
Taxable gain (if any) $5,000 N/A no gain
Deductible loss (if any) N/A $3,000 no loss
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