What is Cecille's gain or loss from the sale of the stock received as a gift from her grandfather?

When determining the gain or loss from the sale of stock received as a gift, it is essential to consider the concept of "gift basis." The basis of the gifted asset is typically determined by the donor's basis at the time of the gift unless the fair market value (FMV) at the time of the gift is less than the donor's basis.

In this scenario, if Cecille sells the stock for the same amount as her grandfather's original purchase price or any amount that doesn't yield a gain or loss, the result will be a zero gain or loss. If the sale proceeds equal the donor's basis, then there is no gain or loss recognized for tax purposes.

In cases where the stock is sold and the sale price is less than the donor's original basis, the loss is not realized unless the stock sold for less than its FMV at the time of the gift, in which case a different calculation may be used. However, for the scenario presented, based on the information provided, if there were no proceeds that resulted in a gain or loss, the answer is effectively $0.

Thus, this answer reflects the principle that the basis of gifted property and the specific circumstances around its sale govern the tax implications of gain or