In June 2019, Karen transferred property with a $75,000 FMV and a $20,000 adjusted basis to Hal,
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In June 2019, Karen transferred property with a $75,000 FMV and a $20,000 adjusted basis to Hal, her husband. Hal dies in March 2020; the property has appreciated to $85,000 in value by then. His gross estate is $1 million.
a. What is the amount of Karen’s taxable gift for 2019?
b. What gain would Hal have recognized if he sold the property for $95,000 in July 2019?
c. If Hal wills the property to Dot, his daughter, what basis would Dot have?
d. How would your answer to Part c change if Hal instead willed the property to Karen?
e. How would your answer to Part d change if Hal did not die until August 2020?
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Related Book For
Federal Taxation 2021 Corporations, Partnerships, Estates & Trusts
ISBN: 9780135919460
34th Edition
Authors: Timothy J. Rupert, Kenneth E. Anderson, David S. Hulse
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