Question

Ned Stark died on February 16, 2018, leaving GBS Corporation stock to his son, Bran. Ned purchased the stock for $30,000 on November 22, 2017, and the fair market value on the date of his death was $38,000. Bran received the stock on April 26, 2018, when the value was $43,000. On June 23, 2018, Bran sold the stock for $44,000. Does he have short-term or long-term capital gain or loss and how much?

Answer 1

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Anwers is highlighted in yellow: Solution: $6,000. Long term Capital gain: Answer Explanation: Bran basis will be the fair value of the date of death of Ned Stark. Therefore, a Gain of $6,000 (44000-38000) will be recongized by Bran. Gain will be treated as long term capital gain no matter what the actual holding period is.