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Jasten
Jasten
15.11.2019 • 
Business

Calculate the basis for gain and basis for loss and the taxable gain or deductible loss for the following gifts which are received and sold in the current year:

donor's adjusted basis fmv at time of gift gift tax paid selling price:

a. $1 $4 $4 $35

b. $1 $8 $8000 $7

c. $1 $3 $6000 $4

alex begins using his automobile for business purposes in his new job. the automobile cost $25000 and has a fair market value of $9000 on the date of the conversion to business use.

a) what is alex's initial basis in the automobile? explain

b) what is alex's basis for computing depreciation on the automobile? explain

chanetra inherits land from her aunt, tameka. tameka's adjusted basis in the land was $15, and the fair market value at the date of her death was $2. six months after tameka's death, the land is appraised at $225000. plans for a nearby shopping mall are announced, and the fair market value skyrockets to $4 when the land is transferred to chanetra 9 months after her aunt's death. the total value of all tameka's assets is $85 at date of death and $86 six months after death.

a) can the executor elect the alternate valuation date? explain

b) what is chanetra's basis?

jesse's grandfather dies on april 13 of the current year. jesse inherits the following property:

property basis fmv- april 13 fmv-oct 13

land $5000 $2 $13000

stock $14000 $1 $12000

watch $50 $500 $500

a) what is jesse's basis in the inherited property?

b) what is jesse's basis in the property if the executor of the estate elects the alternate valuation date?

c) assume that the executor elects the alternate vauation date and distributes title to the land to jesse on june 23 of the current year, when the fair market value of the land is $17000. what is jesse's basis in her inherited property?

d) assume that the executor elects the alternate valuation date and distributes the property to jesse on december 2 of the current year, when the dair market value are $15000 for the land, $11500 for the stock, and $500 for the watch. what is jesse's basis in her inherited property?

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