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Mary has yet to officially divorce but is filing head of household. Mary sold 1,000 shares of corporate stock for $40.00/share on June 1, 2016, which she had received as part of the property settlement with Manny. The couple had purchased the stock for $15.00/share in 2005. The fair market value of the stock on December 31, 2015, the date that it was transferred to Mary's name only, was $35.00/share.

Would the capital gain recognized be $25/share or $15/share?

 

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