Monte inherited 1,000 shares of Corporation Zero stock from his father who died on March 4 of the current year. His father paid $30 per share for the stock on September 2, 2005. The FMV of the stock on the date of death was $50 per share. On September 4 this year, the FMV of the stock was $55 per share. The executor did not elect the alternate valuation date. Monte sold the stock for $65 per
share on December 3. What is the amount and nature of any gain or loss?
A) $10,000 LTCG
B) $35,000 LTCG
C) $15,000 LTCG
D) $15,000 STCG
C) $15,000 LTCG
The basis of the stock is the FMV on the date of death unless the alternate valuation date is elected. $65,000 amount realized - $50,000 basis = $15,000. Gains on the sale of inherited property are always LTCG.
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