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On June 1 , Mario entered into a contract to sell real estate for $ 1 , 0 0 0 , 0 0 0 (
On June Mario entered into a contract to sell real estate for $adjusted basis
$ The sale was conditioned on a rezoning of the property for commercial use. A
$ deposit placed in escrow by the purchaser was refundable in the event the rezoning
was not accomplished.
Mario died unexpectedly on November After considerable controversy, the rezoning
application was approved on November and two days later, $ was paid to Marios
estate in full satisfaction of the purchase price. Discuss the estate and income tax
consequences of this scenario, assuming that the sale of the real estate occurred:
a After Marios death.
b Before Marios death.
When do you think the sale occurred? Why?
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