In June 2011, Karen transfers property with a $75,000 FMV and a $20,000 adjusted basis to Hal, her husband. Hal dies on March 2012; the property has appreciated to $85,000 in value by then. His gross estate is $1 million.

1. The amount of Karen’s taxable gift in 2011.

2. The gain that Hal would recognize if he sells the property for $95,000 in July 2011.

3. Dot’s basis in the property if Hal wills it to her.

4. Karen’s basis in the property if Hal wills it to her.

5. Karen’s basis in the property if Hal wills it to her and he doesn’t die until August 2012.

Answer rating: 100% (QA)

1 The amount of Karens taxable gift in 2011 As Karen transfer property to his husband Spouse so that ... View the full answer