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Brent received 1,000 shares of Alabama Corporation stock from his uncle as a gift on July?...

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Accounting

Brent received 1,000 shares of Alabama Corporation stock fromhis uncle as a gift on July? 20, 2017?, when the stock had a$275,000 FMV. His uncle paid $ 100,000 for the stock on April? 12,2002. The taxable gift was $ 275,000?, because his uncle madeanother gift to Brent for $25,000 in January and used the annualexclusion. The uncle paid a gift tax of $13,750. Withoutconsidering the transactions? below, Brent's AGI is $75,000 in2018. No other transactions involving capital assets occur duringthe year.

Analyze each transaction? below, independent of the? others, anddetermine Brent's AGI in each case. ?(Do not round intermediarycalculations. Only round the amounts you input in the cells to thenearest dollar. Use a minus sign or parentheses to enter a?loss.)

a. He sells the stock on October? 12, 2018?, for $281,000.

b. He sells the stock on October? 12, 2018?, for $106,750.

c. He sells the stock on December? 16, 2018?, for $269,000.

Answer & Explanation Solved by verified expert
4.1 Ratings (738 Votes)
Given that the fair value of gifted stocks is 275000while the cost of acquisition on date of acquisition to donor is 100000 As per IRSif you sell the gifted stock at profit the cost base for tax should be considered as original cost to the donor plus any gift tax paidI e 10000013750 113750 Given that the AGI with out including    See Answer
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