Mary has a diamond necklace that she wants to give to her new daughter in law Janice.
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Mary has a diamond necklace that she wants to give to her new daughter in law Janice. The diamond necklace was worth $250,000 at the time of the gift and Mary's basis in the necklace was $50,000. Mary owned the necklace for 10 years. Mary paid $40,000 in gift taxes. Janice needed money so she sold the necklace for $200,000 two weeks after she received it.
What, if any, is Janice's gain or loss on the sale of the necklace for federal income tax purposes?
Related Book For
South Western Federal Taxation 2017 Essentials Of Taxation Individuals And Business Entities
ISBN: 9780357109144
20th Edition
Authors: William A. Raabe, David M. Maloney, James C. Young, Annette Nellen
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