Eleven months ago, Lynnette received 1,000 shares of stock from her uncle, Joseph. Joseph purchased the stock eight years ago for $12 per share. The fair market value on the date of the gift to Lynnette was $9 per share, and she sold the stock today for $5 per share. What is the amount and character of Lynnette's loss from the sale of the stock?
1) $7,000 long-term capital loss
2) $4,000 short-term capital loss
3) $3,000 short-term capital loss
4) $3,000 long-term capital loss