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erinseal353Lv1
28 Sep 2019
During the current year, Stan sells a tract of land for $800,000.The property was received as a gift from Maxine on March 10, 1995,when the property had a $310,000 FMV. The taxable gift was $300,000because the annual exclusion was $10,000 in 1995. Maxine purchasedthe property on April 12, 1980, for $110,000. At the time of thegift, Maxine paid a gift tax of $12,000. In order to sell theproperty, Stan paid a sales commission of $16,000.
a. What is Stanâs realized gain on the sale?
b. How would your answer to Part a change, if at all, if the FMV ofthe gift property was $85,000 as of the date of the gift?
Irene owns a truck costing $15,000 and used for personalactivities. The truck has a $9,600 FMV when it is transferred toher business, which is operated as a sole proprietorship.
a. What is the basis of the truck for determiningdepreciation?
b. What is Ireneâs realized gain or loss if the truck is sold for$5,000 after claiming depreciation of $4,000?
During the current year, Stan sells a tract of land for $800,000.The property was received as a gift from Maxine on March 10, 1995,when the property had a $310,000 FMV. The taxable gift was $300,000because the annual exclusion was $10,000 in 1995. Maxine purchasedthe property on April 12, 1980, for $110,000. At the time of thegift, Maxine paid a gift tax of $12,000. In order to sell theproperty, Stan paid a sales commission of $16,000.
a. What is Stanâs realized gain on the sale?
b. How would your answer to Part a change, if at all, if the FMV ofthe gift property was $85,000 as of the date of the gift?
Irene owns a truck costing $15,000 and used for personalactivities. The truck has a $9,600 FMV when it is transferred toher business, which is operated as a sole proprietorship.
a. What is the basis of the truck for determiningdepreciation?
b. What is Ireneâs realized gain or loss if the truck is sold for$5,000 after claiming depreciation of $4,000?
a. What is Stanâs realized gain on the sale?
b. How would your answer to Part a change, if at all, if the FMV ofthe gift property was $85,000 as of the date of the gift?
Irene owns a truck costing $15,000 and used for personalactivities. The truck has a $9,600 FMV when it is transferred toher business, which is operated as a sole proprietorship.
a. What is the basis of the truck for determiningdepreciation?
b. What is Ireneâs realized gain or loss if the truck is sold for$5,000 after claiming depreciation of $4,000?
Lelia LubowitzLv2
28 Sep 2019