Problem
On October 15, 2016, Jerry s gave him a gift of 1ooo shares of Apple Stock when the stock was trading at $115 per share. The parents' paid $15.00 per share when the stock was purchased in 1990. What is Jerry's basis in the Apple stock received? Seth makes a gift of property with a basis of $800 to Sherry when the property has a $500 fair market value. Sherry sells the property for $700. What is Sherry's basis in the property and what is her gain or loss? Adam inherits property from his father when the FMV is $10,000. The father's cost basis is $2500. At the alternate valuation date (AVD) six months later, the property has a FMV of $8,000. The Executor elects the AVD and Adam sells the property a short time later for $9,000. What is Adam's gain or loss? What is the character of the gain or loss?