6. Assume the same facts in question 5, above, and that Jon also transfers stock agreement. The stock was acquired by Jon in June 2018 at a cost of $15,000 and had a FMV on the transfer date (i.e., December 2018) of $25,000. After her divorce, Melissa decided to sell the stock in August 2019 for $23,000. Melissa's marginal tax rate in 2019 was 32%. What was the 2019 income taxation to Melissa of the stock sale? a. $2,000 short-term capital loss b. $2,000 long-term capital loss $7,000 long-term capital loss d. $8,000 short-term capital gain $8.000 long-term capital gain C.

Any capital asset when sold can give the seller a higher or lower price from its purchase price leading to a capital gain or capital loss. The time period of holding an asset is decided based on if it is a long term or short-term capital gain. On that ba…