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32. Jessica owns investment land currently worth $500,000. She paid $80,000 for the land 10years ago. She expects that the land will probably increase in value to at least $800,000 beforeshe dies. She has not previously given any taxable gifts.
a. If Jessica gives the land to her son now, what basis will he use for determining gainwhen he sells the land?b. If Jessica dies in 2011 and bequeaths the land to her son, what basis will he use fordetermining gain when he sells the land?c. If Jessica’s son plans to keep the land instead of selling it, should she give it to himnow or bequeath it to him? Explain the reason for your choice.42. Sondra and Jason, a wealthy married couple, won $96 million in a 2011 Powerballdrawing. They decided to share some of this new wealth immediately with some of theirfriends and family. -They paid $1,800,000 on a new home for Sondra’s parent, titling the home jointly in theparents’ names;-Bought a condominium on Captiva Island for Jason’s widowed mother for $950,000;-Gave $1 million to a local charity that provides homes and job training for homeless families;