Does Betty have to recognize any gain when she acquires the option? If Betty does exercise the
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Question:
- Does Betty have to recognize any gain when she acquires the option?
- If Betty does exercise the option- what is her adjusted basis in the land?
Betty acquired an option to buy Sam's raw land for an option price of $10,000. The option provided that Betty would either: (1) exercise the option in one year and buy the property for an additional $215,000 or (2) not exercise the option, let it lapse and forfeit the $10,000 to Sam.
Related Book For
Fundamentals Of Taxation 2015
ISBN: 9781259293092
8th Edition
Authors: Ana Cruz, Michael Deschamps, Frederick Niswander, Debra Prendergast, Dan Schisler, Jinhee Trone
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