Ben and Miranda recently sold some land they owned for $150,000. They received the land and a check equal to the amount of the then-current annual exclusion five years ago as a wedding gift from Ben's Aunt Addison. They also received a check equal to the annual exclusion on their wedding date. Aunt Addison purchased the land many years ago when the property was worth $20,000. At the date of the gift, the property was worth $100,000 and Aunt Addison paid $47,000 in gift tax. What is the long term capital gain on the sale of the property? Group of answer choices d. $130,000. b. $50,000. a. $42,400. c. $92,400.
Ben and Miranda recently sold some land they owned for $150,000. They received the land and a check equal to the amount of the then-current annual exclusion five years ago as a wedding gift from Ben's Aunt Addison. They also received a check equal to the annual exclusion on their wedding date. Aunt Addison purchased the land many years ago when the property was worth $20,000. At the date of the gift, the property was worth $100,000 and Aunt Addison paid $47,000 in gift tax. What is the long term capital gain on the sale of the property? Group of answer choices d. $130,000. b. $50,000. a. $42,400. c. $92,400.
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 43P
Related questions
Question
Transcribed Image Text:Ben and Miranda recently sold some land
they owned for $150,000. They received the
land and a check equal to the amount of the
then-current annual exclusion five years ago
as a wedding gift from Ben's Aunt Addison.
They also received a check equal to the
annual exclusion on their wedding date. Aunt
Addison purchased the land many years ago
when the property was worth $20,000. At the
date of the gift, the property was worth
$100,000 and Aunt Addison paid $47,000 in
gift tax. What is the long term capital gain on
the sale of the property? Group of answer
choices
d. $130,000.
b. $50,000.
a. $42,400.
c. $92,400.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT