Clara received from her Aunt Sona, property with a FMV at the date of the gift of
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Question:
Clara received from her Aunt Sona, property with a FMV at the date of the gift of $38,800. Aunt Sona purchased the property five years ago for $32,600. Clara sold the property for $40,000. Assume Aunt Sona does not have MAGI of over $200,000.
A) What is the basis to Clara?
B) What is Clara’s gain on the sale?
C) 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)?
D) If Clara is in the 15% tax bracket, what is the tax on the gain (assuming she has no other gains/losses to be netted)?
Related Book For
Advanced Accounting
ISBN: 978-1934319307
2nd edition
Authors: Susan S. Hamlen, Ronald J. Huefner, James A. Largay III
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