Juliana purchased land three years ago for $106,300. She made a gift of the land to Tom, her brother, in the current year, when the fair market value was $148,820. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $133,938. a. Tom's basis in the land is s and he has a realized of s on the sale. b. Assume, instead, that the land has a fair market value of $95,670 on the date of the gift, and that Tom sold the land for $90,887. Tom's basis in the land is s and he has a realized of on the sale.
Juliana purchased land three years ago for $106,300. She made a gift of the land to Tom, her brother, in the current year, when the fair market value was $148,820. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $133,938. a. Tom's basis in the land is s and he has a realized of s on the sale. b. Assume, instead, that the land has a fair market value of $95,670 on the date of the gift, and that Tom sold the land for $90,887. Tom's basis in the land is s and he has a realized of on the sale.
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 57P
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Transcribed Image Text:Juliana purchased land three years ago for $106,300. She made a gift of the land to Tom, her brother, in the current year, when the fair
market value was $148,820. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $133,938.
a. Tom's basis in the land is $
and he has a realized
of $
on the sale..
b. Assume, instead, that the land has a fair market value of $95,670 on the date of the gift, and that Tom sold the land for $90,887.
Tom's basis in the land is s
and he has a realized
of $
on the sale.
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