Tom, Dan and Harry, estate residuary beneficiaries, each received a distribution
ID: 2593318 • Letter: T
Question
Tom, Dan and Harry, estate residuary beneficiaries, each received a distribution of property from the estate consisting of 100 shares of XYZ, Inc. The stock constituted original estate inventory. The decedent has paid $1,000 for each 100 share lot and each 100 share lot was worth $2,000 when he died. Dan sold his 100 share lot for $1,500 two months after receiving it. Dan
a. realizes and recognizes a long term capital loss of $500.
b. realizes and recognizes a short term capital gain of $500.
c. realizes and recognizes a long term capital gain of $500.
d. realizes neither gain nor loss.
Explanation / Answer
The answer would be option A I.e, realizes and recognises a long term capital loss of $500 as it was in the case of estate residuary beneficiary's .