Four years ago, Travis, a single taxpayer, acquired stock in acorporation that qualified as a small business corporation under §1244, at a cost of $60,000. Travis wants to give his son, Jaden,$20,000 to help finance Jaden’s college education. The stock iscurrently worth $20,000. Travis is considering selling the stock inthe current year for $20,000 and giving the cash to Jaden. As analternative, Travis could give the stock to Jaden and let Jadensell it for $20,000. Which alternative should Travis choose?
