Situation #1

Clara received from her Aunt Sona, property with a FMV at the date of the gift of $36,000. Aunt Sona purchased the property five years ago for $30,000. Clara sold the property for $37,000.

1. What is the basis to Clara?
2. What is Clara's gain on the sale?
3. If Clara is in the 37% tax bracket, what is the tax on the gain (assuming she has no other gains/losses to be netted)?
4. If Clara is in the 24% tax bracket, what is the tax on the gain (assuming she has no other gains/losses to be netted)?

Situation #2

Clara received from her Aunt Sona, property with a FMV at the date of the gift of $25,000. Aunt Sona purchased the property five years ago for $31,000.

1. If Clara sold the property for $39,025, what is her gain or loss on the sale?
2. If Clara sold the property for $28,985, what is her gain or loss on the sale?
3. If Clara sold the property for $22,985, what is her gain or loss on the sale?