Discuss megan from claiming sam and dana as dependents

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Early in December 2015, Fred and Megan Samuels review their financial and tax situation with their son Sam, ad daughter-in law, Dana, who live with them. Fred and Megan are in 28% tax bracket in 2015. Both Sam and Dana are age 21. Sam, a student at a nearby university owns some publicly traded stock that he inherited from his grandmother. A current sale would result in approximately $8,000 of gross income )($19,000 amount realized - $11,000 adjusted basis) at this point, Fred and Megan provide about 55% of Sam and Dana's support. Although neither is now employed, Sam has earned $960 and Dana has earned $900. The problem: should the stock be sold, and would the sale prohibit Fred and Megan from claiming Sam and Dana as dependents? Would the stock sale in 2015 result in a tax liability for Sam and Dana?

Reference no: EM131771357

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