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Recently, Valerie gave the MISU stock she had purchased six years ago to her sister, Kirsten....

Recently, Valerie gave the MISU stock she had purchased six years ago to her sister, Kirsten. The value of the stock at the time of the gift was $100,000. If Valerie paid $150,000 for the stock and owed no gift taxes on the gift to Kirsten, what is Kirsten's gain or loss when she sells the stock for $110,000?

($10,000)

$10,000

($40,000)

$0

$20,000

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Answer #1

No loss is allowed as deduction on sale of capital asset to relative.

since, basis of stock is more than the selling price, loss on sale is $0.

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