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Unformatted text preview: property.) Basis is $4,000, the donors basis for all purposes (this is not loss property) , so a sale for $3,000 yields a $1,000 loss, a sale for $9,000 yields a $5,000 gain and a sale for $6,000 yields a $2,000 gain. 3. Alice buys stock for $9,000 and gives it to her friend Millie as a gift when it's worth $7,500. How much gain or loss will Millie have if she sells it for $6,000? for $10,000? for $8,500? (Note: this is "loss" property.) On loss property, the basis is only determined when the item is sold. It may be either Alices cost $9,000, or its (lower) value at the time of the gift ($7,500). If its sold low for $6,000, the basis is the lower amount, $7,500, so the loss is $1,500. If its sold high, for $10,000, the basis is the higher amount $9,000, so the gain is $1,000. If its sold in between the two numbers, for $8,000, there is no gain and no loss....
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 Spring '11

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