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Harvey sold stock valued at $29,000 to his son for $15,000 Harvey's basis in the stock is $26000.how does he report his gift tax
which is correct? A)harvey reports a gift of $29,000 on form 709 and a capital loss of 14,000 on form 1040, Silass basis in the stock is 15,000. B)no reporting is required because a transfer was between immediate family members. C) Harvey is not required to report the $14,000 gift and is not allowed to deduct the $11,000 loss. If Silas sells his stock his basis for gain is 26000. D) Harvey reports a gift of 29,000 silas's basis in the stock is 15000
Answer is option C
C) Harvey is not required to report the $14,000 gift and is not allowed to deduct the $11,000 loss. If Silas sells his stock his basis for gain is 26000
If son's basis is 26000 and if it is sold then Harvey is not required to report the stock given as gift and as gift is not recorded, no deduction for loss is allowed.
Harvey sold stock valued at $29,000 to his son for $15,000 Harvey's basis in the stock...
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