Anike received property as part of an inheritance from her father who passed away on March 10, 2013. The property was purchased by her father on July 3, 2012, for $146,000. Anike sold the property on June 30, 2013, for $158,000. At the date of his death, the property had an FMV of $144,000. What gain, if any, will Anike pick up on her return for 2013? a. No gain is recognized on the sale of property sold within 1 year of inheritance. b. $3,000 long-term gain. c. $12,000 long-term gain. d. $14,000 long-term gain.
Anike received property as part of an inheritance from her father who passed away on March 10, 2013. The property was purchased by her father on July 3, 2012, for $146,000. Anike sold the property on June 30, 2013, for $158,000. At the date of his death, the property had an FMV of $144,000. What gain, if any, will Anike pick up on her return for 2013? a. No gain is recognized on the sale of property sold within 1 year of inheritance. b. $3,000 long-term gain. c. $12,000 long-term gain. d. $14,000 long-term gain.
Chapter8: Taxation Of Individuals
Section: Chapter Questions
Problem 40P
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Transcribed Image Text:Anike received property as part of an inheritance from her father who
passed away on March 10, 2013. The property was purchased by her
father on July 3, 2012, for $146,000. Anike sold the property on June
30, 2013, for $158,000. At the date of his death, the property had an
FMV of $144,000. What gain, if any, will Anike pick up on her return for
2013?
a. No gain is recognized on the sale of property sold within 1 year of
inheritance.
b. $3,000 long-term gain.
c. $12,000 long-term gain.
d. $14,000 long-term gain.
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