liana purchased land three years ago for $90,100. She made a gift of the land to Tom, her brother, in the current year, when the fain arket value was $126,140. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $113,526. Tom's basis in the land is $ 90,100 V and he has a realized gain -v of $ 23,246 x on the sale. Assume, instead, that the land has a fair market value of $81,090 on the date of the gift, and that Tom sold the land for $77,036. m's basis in the land is $ 113,256 X and he has a realized Joss v of $ 12,614 x on the sale.
liana purchased land three years ago for $90,100. She made a gift of the land to Tom, her brother, in the current year, when the fain arket value was $126,140. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $113,526. Tom's basis in the land is $ 90,100 V and he has a realized gain -v of $ 23,246 x on the sale. Assume, instead, that the land has a fair market value of $81,090 on the date of the gift, and that Tom sold the land for $77,036. m's basis in the land is $ 113,256 X and he has a realized Joss v of $ 12,614 x on the sale.
Chapter15: Property Transactions: Nontaxable Exchanges
Section: Chapter Questions
Problem 52P
Related questions
Question
Transcribed Image Text:Juliana purchased land three years ago for $90,100. She made a gift of the land to Tom, her brother, in the current year, when the fair
market value was $126,140. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $113,526.
a. Tom's basis in the land is $
90,100 V and he has a realized gain
-v of $
23,246 x on the sale.
b. Assume, instead, that the land has a fair market value of $81,090 on the date of the gift, and that Tom sold the land for $77,036.
Tom's basis in the land is $
113,256 x and he has a realized loss
V of
12,614 X on the sale.
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
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