LO.4 Jonathan Rand is distressed about the basis of some land he inherited five years ago and recently sold for a large gain. He thinks that the value placed on the property is too low. Consequently, he requests your advice as to whether he is bound by this value.

a. Write a letter to Jonathan regarding this matter. Jonathan’s address is 326 Wisteria Avenue, Charlotte, NC 28223.

b. Include in the letter a list of further information you will need before you can assess the probability of success in challenging the value used by the estate.