Juliana purchased land three years ago for $73,900. She gave the land to Tom, her brother, in the current year, when the fair market value was $103,460. No gift tax is paid on the transfer. Tom subsequently sells the property for $93,114. a. Tom's basis in the land is $________ and he has a realized _______ of $________ on the sale. b. Assume, instead, that the land has a fair market value of $66,510 and that Tom sold the land for $63,185. Tom's basis in the land is $________ and he has a realized _______ of $________ on the sale.
Juliana purchased land three years ago for $73,900. She gave the land to Tom, her brother, in the current year, when the fair market value was $103,460. No gift tax is paid on the transfer. Tom subsequently sells the property for $93,114. a. Tom's basis in the land is $________ and he has a realized _______ of $________ on the sale. b. Assume, instead, that the land has a fair market value of $66,510 and that Tom sold the land for $63,185. Tom's basis in the land is $________ and he has a realized _______ of $________ on the sale.
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 57P
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Juliana purchased land three years ago for $73,900. She gave the land to Tom, her brother, in the current year, when the fair market value was $103,460. No gift tax is paid on the transfer. Tom subsequently sells the property for $93,114.
a. Tom's basis in the land is $________ and he has a realized _______ of $________ on the sale.
b. Assume, instead, that the land has a fair market value of $66,510 and that Tom sold the land for $63,185.
Tom's basis in the land is $________ and he has a realized _______ of $________ on the sale.
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