In June 2016, Karen transferred property with a $75,000 FMV and a $20,000 adjusted basis to Hal,

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In June 2016, Karen transferred property with a $75,000 FMV and a $20,000 adjusted basis to Hal, her husband. Hal dies in March 2017; the property has appreciated to $85,000 in value by then. His gross estate is $1 million.

a. What is the amount of Karen’s taxable gift for 2016?

b. What gain would Hal have recognized if he sold the property for $95,000 in July 2016?

c. If Hal wills the property to Dot, his daughter, what basis would Dot have?

d. How would your answer to Part c change if Hal instead willed the property to Karen?

e. How would your answer to Part d change if Hal did not die until August 2017?

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Federal Taxation 2018 Comprehensive

ISBN: 9780134532387

31st Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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