Chapter 9 ICE - Burkett Tax 1 Chapter 9 Fair Market Value...

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Burkett – Tax 1 – Chapter 9 1 Fair Market Value Allocation of Basis Joe paid $120K plus $5K of closing costs (attorney fees, cost of appraisal, title insurance, etc.) for a building and the land on which it was located to be used in his business . The appraisal that was used to secure the loan for the purchase indicated that the FMV of the building was $100K and the land $30K. What is Joe’s basis in the land & the building?
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Burkett – Tax 1 – Chapter 9 2 Basis of Property Acquired by Gift FMV > Basis on date of gift , Ex. 23, page 9.19 Gift of land. FMV is $50K, donor’s basis is $40K & gift tax is $5K. What is donee’s basis? If FMV < Donor’s basis on date of gift , Ex 24-25, page 9.20 Gift of land. FMV is $28K, Donors basis is $40K & Gift Tax is $3K. What is donee’s basis, gain (loss) & holding period if later sells? Basis for gain? Basis for loss? Sale price $46,000 $24,000 $33,000 Basis Gain (Loss) Hold Period Starts?
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Burkett – Tax 1 – Chapter 9 3 Basis in Property Converted From Personal to Business Use
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This note was uploaded on 02/22/2012 for the course ACCT 403 taught by Professor White during the Fall '11 term at South Carolina.

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Chapter 9 ICE - Burkett Tax 1 Chapter 9 Fair Market Value...

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