In 2008, Rebecca received a gift of stock worth $25,000. The donor's adjusted basis was $20,000. The donor originally purchased the land in 2003.
If Rebecca sells the stock for $23,000 in 2013 to an unrelated party, what is the realized gain or loss from the transaction? What is Rebecca's holding period?
If Rebecca sells the stock for $18,000 in 2013 to an unrelated party, what is the realized gain or loss from the transaction? What is Rebecca's holding period?