AC553_W7_Solution10_38

AC553_W7_Solution10_38 - d. If the executor elected the...

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1 Problem 10-38 Solution Basis and Gain or Loss: Inherited Property Beverly Bergman purchased land for $30,000 in 1986. The land was valued at $180,000 on April 15, 2007, when Beverly died. Her son Jack inherited the land. Six months later, on October 15, 2007, the property was valued at $170,000. a. What is Jack’s basis in the land? b. If the executor of Beverly’s estate elected the alternate valuation date, what is Jack’s basis? c. If the executor elected the alternate valuation date but distributed the property on July 21, 2007, what would be Jack’s basis?
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Unformatted text preview: d. If the executor elected the alternate valuation date but distributed the property on November 19, 2007, what would be Jacks basis? e. If Jack sells the property on December 22, 2007, will he have short-term or long-term gain or loss? Solution: a. $180,000, the fair market value at the date of Beverly's death. b. $170,000, the value on October 15, 2007. c. The fair market value on July 21, 2007. d. $170,000, the fair market value on October 15, 2007, six months after Beverly's death. e. There is long-term treatment for property that is acquired from a decedent....
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