Anike received property as part of an inheritance from her father who passed away on March 10, 2009.The property was purchased by her father on July 3, 2008, for $146,000. Anike sold the property onJune 30, 2009, for $158,000. At the date of his death the property had a FMV of $144,000. What gain, ifany, will Anike pick up on her return for 2009?A.no gain is recognized on the sale of property sold within 1 year of inheritance.B.$3,000 long-term gain.C.$12,000 long-term gain.D.$14,000 long-term gain
Which of the following statements is incorrect regarding the gain or loss from the sale of propertyreceived as a gift?A.If the FMV is less than the donor’s adjusted basis at the time of the gift, the basis for figuring the gainis the donor’s basis.B.If the FMV is less than the donor’s adjusted basis at the time of the gift, the basis for figuring the lossis the FMV of the asset
Which of the following statements is incorrect regarding the gain or loss from the sale of propertyreceived as a gift?A.If the FMV is less than the donor’s adjusted basis at the time of the gift, the basis for figuring the gainis the donor’s basis.B.If the FMV is less than the donor’s adjusted basis at the time of the gift, the basis for figuring the lossis the FMV of the asset
Answer:
Anike should record the gain of $ 14,000
Working notes for the above answer is as under
We have been given in the sum that,
Anike sold the property on June 30, 2013 for $158,000.
At the date of his death the property had a FMV of $144,000.
So we should consider the difference of both two price as ,long term gain
long term gain
= 158,000 -144,000
=$ 14,000 long term gain
Which of the following statements is incorrect regarding the gain or loss from the sale of property received as a gift
Answer:
C : If FMV equal to or more then the donor’s adjusted basis for any gain or loss on a sale is the FMV of the assets
