In July 2014, Lily gives Larry a house (basis of $200,000; fair market value of $650,000) to be used as his personal residence. Before his death in June 2015, Larry installs a tennis court in the backyard at a cost of $25,000. The residence has a value of $670,000 when Larry dies. Determine the income tax basis of the property to the heir under the following independent assumptions.

a. The residence passes to Lily.

b. The residence passes to Burl (Lily’s husband).

c. The residence passes to Tina (Lily’s daughter).