Rob sells stock with a cost of $3,000 to his daughter for $2,200, which is its fair market value. Later the daughter sells the stock for $3,200 to an unrelated party. Which of the following describes the tax treatment to Rob and Daughter?
A.
| Rob | Daughter |
| Recognizes no loss | Recognizes gain of $1,000 |
B.
| Rob | Daughter |
| Recognizes $800 loss | Recognizes gain of $1,000 |
C.
| Rob | Daughter |
| Recognizes no loss | Recognizes gain of $200 |
D.
| Rob | Daughter |
| Recognizes $800 loss | Recognizes gain of $200 |
Answer: C
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