In 2011, Maria Hill purchased 20 shares of stock for $25,000. On January 30, 2019, Marie...
In 2011, Maria Hill purchased 20 shares of stock for $25,000. On January 30, 2019, Marie Hill sold her son the stock for $20,000. On July 1, 2019, her son sold the stock to Julius Dell, an unrelated third party for $35,000. What are the tax results for the parties?
Homework Answers
When shares transferred to her son (relative) for inadequate consideration shall not be taxable if it is less than 50000.therefore in the hands of her son not taxable.
For a consideration which is less than the aggregate fair market value of the property by an amount exceeding fifty thousand rupees, the aggregate fair market value of such property as exceeds such consideration. There fore it is exempted for tax.
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In 2011, Maria Hill purchased 20 shares of stock for $25,000. On
January 30, 2019, Marie...
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