On June 1, 2021, Nigel sells land (basis $55,000) to his daughter Ana for $40,000, the lands

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On June 1, 2021, Nigel sells land (basis $55,000) to his daughter Ana for $40,000, the land’s fair market value on the date of the sale. On September 21, 2021, Anasells the land to an unrelated party. Which of the following statements is correct?

a. If Anasells the land for $35,000, he has a $20,000 recognized loss on the sale.

b. If Anasells the land for $65,000, he has a $25,000 recognized gain on the sale.

c. If Anasells the land for $45,000, he has a $5,000 recognized gain on the sale.

d. If Anasells the land for $57,000, he has a $2,000 recognized gain on the sale.

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Fundamentals Of Taxation 2022

ISBN: 9781264209408

15th

Authors: Ana Cruz, Michael Deschamps, Frederick Niswander

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Question Posted: Apr 30, 2023 07:37 AM

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On June 1, 2021, Nigel sells land (basis $55,000) to his daughter Ana for $40,000, the lands

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Fundamentals Of Taxation 2022

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