Sale of Assets Received as a Gift and Inherited

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Sale of Assets Received as a Gift and Inherited

a)
A&M stock was sold for $62,600, and Longhorn stock was sold for $30,750.

A & M stock was sold at a gain so the basis for the gifted property is $42,000 (basis of donor) + $9,300 (gift tax) = 51,300. Decedent death was after 2010, so FMV of Longhorn stock is the FMV at the date of death. Longhorn stock sold for more than FMV of the decedent death of $30,000.

(62,600 – 51,300) = 11,300 + (30,750 - 30,000) = 750

11,300 + 750 = 12,050

b) A&M stock was sold for $58,200, and Longhorn stock was sold for $28,650.

A & M stock was sold at a gain so the basis for the gifted property is $42,000 (basis of donor) + $9,300 (gift tax) = 51,300. Longhorn stock was sold for loss than FMV of the decedent death of $30,000.

(58,200 – 51,300) = 6,900 + (28,650 – 30,000) = -1,350

6,900 + (-1,350) = 5,550

c) Assume the same as in Part a, except that his aunt purchased A&M stock for $71,000 and his uncle purchased Longhorn stock for $31,200. A & M stock was sold at a loss. The FMV of the stock at the time of gift was 60,000 which is less than what the donor paid for the stock. So, the basis would be FMV + gift tax. Longhorn stock was also sold for less than donor’s basis

(69,300 – 71,000) = -1,700 + (30,000 – 31,200) = -1,200
(-1,700) + (-1,200) = -2,900
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