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Using the following independent situations, answer the following questions: Situation #1 Clara received from her Aunt Sona, property with a FMV at the date of
Using the following independent situations, answer the following questions:
Situation #1
Clara received from her Aunt Sona, property with a FMV at the date of the gift of $51,400. Aunt Sona purchased the property five years ago for $44,300. Clara sold the property for $53,500. Assume Aunt Sona does not have MAGI of over $200,000.
- What is the basis to Clara?
- What is Clara's gain on the sale?
- If Clara is in the 33% tax bracket, what is the tax on the gain (assuming she has no other gains/losses to be netted)?
- If Clara is in the 15% tax bracket, what is the
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