Question
Teris uncle gave her a house on 12/25/01. The fair market value of the house at the time of the gift was $79,000. Assume he
Teris uncle gave her a house on 12/25/01. The fair market value of the house at the time of the gift was $79,000. Assume he owed no gift tax. Her uncle purchased the house on 3/20/74 for $58,759. The home has never been used for business. Prior to moving into the house, Teri paid for the following: New roof $9,873 Installed storm windows $1,962 Replaced a broken window Replaced gravel in the driveway $ 127 $ 499 Assume if she sells the house in the future, Teri would realize a gain. What is Teris adjusted basis in her home? a) $91,461 b) $90,835 c) $70,721 d) $70,594
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