Faith inherited an undivided interest in a parcel of land from her father on February 15, 2011.

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Faith inherited an undivided interest in a parcel of land from her father on February 15, 2011. Her father had purchased the land on August 25, 1965, and his basis for the land was $325,000. The fair market value of the land is $1,250,000 on the date of her father's death and is $1,100,000 six months later. The executor elects the alternate valuation date. Faith has nine brothers and sisters and each inherited a one-tenth interest.

1) What is Faith's adjusted basis for her one-tenth undivided interest?

2) What is her holding period for the land? 


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South Western Federal Taxation 2017 Comprehensive

ISBN: 9781305874169

40th Edition

Authors: William H. Hoffman, David M. Maloney, William A. Raabe, James C. Young

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