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    A stock question

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    Four years ago, Jim who is a single taxpayer acquired stock in a corporation that qualified as small business under section 1244. He paid $60,000. Now he wants to give his son $20,000 to help with his son's college education. The stock is worth $20,000 now. Jim wants to sell the stock in the current year and give the $20,000 to his son. He can also give the stock to his son and let his son sell it for $20,000. Which alternative should Don choose and why? Thanks.

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    Dear Student,

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    Below are my answers.


    IF Jim sells the stocks himself, then he can charge the $40,000 ($60,000 - $20,000) loss as ...

    Solution Summary

    A stock question is embedded. The alternatives to different stock options are determined.