Triet told Stefanie that he was considering the sale of two different pieces of property, The...

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Triet told Stefanie that he was considering the sale of two different pieces of property, The first property was a house given to him by his aunt Beth (in recognition of her A in Federal Tax). At the time of the gift, the house had a FMV of $78,000 and his aunt's adjusted basis was $100,000. Triet's aunt paid gift tax of $12,000 on the house. Susan offer to buy the house from Triet for $105,000. Triet also received a tract of land from another aunt via inheritance. The land has an adjusted basis of 27,000 and FMV of 33,000. He has an offer (from Liying) of $39,000. What would be the gain on each piece of property? Explain your answer. Triet told Stefanie that he was considering the sale of two different pieces of property, The first property was a house given to him by his aunt Beth (in recognition of her A in Federal Tax). At the time of the gift, the house had a FMV of $78,000 and his aunt's adjusted basis was $100,000. Triet's aunt paid gift tax of $12,000 on the house. Susan offer to buy the house from Triet for $105,000. Triet also received a tract of land from another aunt via inheritance. The land has an adjusted basis of 27,000 and FMV of 33,000. He has an offer (from Liying) of $39,000. What would be the gain on each piece of property? Explain your answer.

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House As per the relevant rules of IRS the adjusted basis for the recipient in case of a property ha... View the full answer