Question
In the current year, Janes mother died and willed her a ring. The rings fair market value at the mothers date of death was $20,000.
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In the current year, Janes mother died and willed her a ring. The rings fair market value at the mothers date of death was $20,000. Six months after her death, the ring was worth $22,000. Janes mother had purchased the ring for $15,000 five year prior to her death. Assuming the estates executor did not make a special election, what is Janes basis in the ring?
$20,000
$0
$15,000
$22,000
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In Year 5, an earthquake severely damaged Fred's home. The area was declared a federal disaster. Fred's home was valued at $210,000 before the earthquake but only $140,000 after the earthquake. The home's cost basis was $110,000 and it was not insured. Fred's adjusted gross income (AGI) was $90,000 in Year 5 and $180,000 in Year 4. Assume his marginal tax rate for the deduction was 22% in Year 5 and 32% in Year 4. What is the maximum tax benefit that Fred can derive from the casualty loss?
$16,608
$0
$13,398
$13,420
$16,640
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A sole proprietor owned an office building with a cost of $300,000 and accumulated depreciation of $40,000, using modified accelerated cost recovery system (MACRS) straight-line depreciation. In the current year, she sold the building for $320,000. What is the unrecaptured Section 1250 gain from this sale, if any?
$40,000
$0
$20,000
$60,000
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