Determine the Adjusted Basis, Holding Period, Amount Recognized for the following transactions. (12 x .5 =6) Taxpayer
Question:
Determine the Adjusted Basis, Holding Period, Amount Recognized for the following transactions.
(12 x .5 =6)
| Taxpayer | Basis | Holding Period Long-term vs. Short-term | Amount Recognized |
| Marlin | |||
| Gary | |||
| Lavern | |||
| Wonder |
1. Marlin Jordan inherited property owned by MiKael Jordan his grandfather who dies in January 2019 when the FMV of the property as $5.8 million. Six months after the date of death, the property has a $5.95 million FMV. The property is distributed to Marlin Jordan in November.
2. Kevon Garnet makes a gift of property owned for 2 years with a basis of $535,000 to Gary Peyton, it FMV on that day was $542,500 FMV. If Gary Peyton sells the property for $600,000, he has a realized gain because the FMV of the property at the time of the gift is more than the donor's basis, the donee's basis for determining both a in and loss.
3. Laverne purchases an asset by paying cash of $40,000 and signs a note payable to Shirley for $60,000. She also assumes a $2,000 lien against the property.
4. Wonder owns land held for 5 years with a basis of $200,000. Using eminent domain the land is taken by the city Wonder received a payment of $300,000 for the land.
Expert Answer:
Holding Amount er Basis Period Recognized 5800000 Long Term 535000 Long Term S ... View the full answer
