1. Dan and Jan, a married couple who live in New York, which is not a community property state, purchased undeveloped land in 1995, as tenants by the entirety, paying $140,000 for the land. Their basis remained at $140,000, and on December 2, 2017, Jan died when the property had a FMV of $160,000. Dans basis in the property after Jans death is

a. $70,000

b. $140,000

c. $150,000

d. $160,000

e. $80,000

2. What if in problem 1 they lived in a community property state?

Dan and Jan, a married couple who live in a community property state, purchased undeveloped land in 1995 paying $140,000 for the land. Their basis remained at $140,000, and on December 2, 2017, Jan died when the property had a FMV of $160,000. Dans basis in the property after Jans death is

a. $70,000

b. $140,000

c. $150,000

d. $160,000

e. $80,000

3. Kathleen received land as a gift from her uncle. At the time of the gift, the land had a FMV of $85,000 and an adjusted basis of $110,000 to Kathleens uncle. One year later, Kathleen sold the land for $80,000. What was her realized gain or loss on this transaction?

a. No gain or loss

b. ($5,000)

c. $5,000

d. $30,000