Mel gives a gift of a parcel of land to his son, Scott. He had purchased the land in 2003 for $140,000 and its fair market value on the date of the gift is $125,000. No gift tax is paid. Scott subsequently sells the land for $131,000.

What is Scott's recognized gain or loss from the sale of the land? What is Scott's recognized gain or loss from the sale of the land, if instead of $131,000, Scott sold the land for $150,000? If, instead, Mel held on to the land and left it to Scott in his will, what would Scott's basis be in the land if the fair market value of the land on the date of Mel's death was $200,000?

Answer rating: 100% (QA)

To calculate Scott s recognized gain or loss from the sale of the land we need to consider the basis View the full answer