Drew receives 700 shares of Ace Corporation stock from his aunt on May 20, 2023, as a gift when the stock has a $ 140 000 fair market value (FMV). His aunt purchased the stock in 2013 for $ 77 000. The taxable gift is $ 140000 because she made earlier gifts to Drew during 2023 and used the annual exclusion. She paid a gift tax of $ 21 700 on the gift of Ace stock to Drew. Drew also inherited 400 shares of Rib World Corporation preferred stock when his uncle died on November 12, 2022 when the stock's FMV was $ 64000. His uncle purchased the stock in 2001 for $38,000. a. Determine the gain or loss on the sale of Ace and Rib World stock on December 15, 20232023 if Ace stock was sold for $142,200, and Rib World stock was sold for $66,500.



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