1. Teri's uncle gave her a house on 12/25/02. Her uncle purchased the house on 3/20/74 for

$58,759. The fair market value of the house at the time of the gift was $79,000. Assume he

owed no gift tax. The home has never been used for business. Before moving into the house,

Teri paid for the following:

New roof $9,873

Installed storm windows $1,962

Replaced a broken window $ 127

Replaced gravel in the driveway $ 499

What is Teri's adjusted basis in her home?

a) $91,461

b) $90,835

c) $70,721

d) $70,594

2. George sold some stocks in 2017. Which of the following is a long-term capital gain/loss?

Property Date Purchased Date Sold

a) ABC Company May 15, 2016 January 16, 2017

b) XYZ Company February 12, 2016 February 12, 2017

c) SB Company January 15, 2016 January 16, 2017

d) TT Company August 1, 2016 July 31, 2017

3. David had gains/losses from the sale of the following items. How much is his total capital

gain/loss?

Gain/Loss

Sale of his main home purchased three years ago: ($65,000)

Sale of songs written by him one year ago: $2,500

Sale of stocks held for investment: $15,500

Sale of his jewelry inherited from his mother: $28,000

a) ($19,000)

b) $43,500

c) $46,000

d) $15,500