Elizabeth income tax basis in the stock


In 2012, Arlene made a gift of stock (basis of $813,000; fair market value of $413,000) to her mother, Elizabeth. As a result of the transfer, Arlene paid a gift tax of $60,000. Elizabeth's income tax basis in the stock is:

a. $413,000 basis for gain and loss if Elizabeth sells the property.

b. $443,000 basis for gain and loss if Elizabeth sells the property.

c. $813,000 basis if Elizabeth sells it for gain and $413,000 basis if Elizabeth sells it at a loss.

d. $873,000 basis for gain and loss if Elizabeth sells the property.

e. None of the above.

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Accounting Basics: Elizabeth income tax basis in the stock
Reference No:- TGS039021

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