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Article Date:
April 2024


Word Count:
244

 

 

Tax Quiz—Sell Stock at a Loss to Your Daughter


You bought stock in 2022 for $17,000. In 2024, you sell this stock to your daughter at fair market value for $9,000. What is the loss deduction you may claim on your 2024 tax return?

 

a.

$0

b.

$3,000

c.

$8,000

d.

$9,000

 

Answer

 

Correct answer: $0. You may not deduct this loss because you made the sale to a related party—your daughter.1

 

The related-party rules apply. If she sells the stock at a loss, her basis is $9,000. If she sells the stock at a gain, she may use your ... Log in to view full article.

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