Gainer acquired an apartment in a condominium complex by inter Vivos gift from Relative. Both used it only as a residence. It had been purchased by Relative for $200,000 cash and was given to Gainer when it was worth $300,000. Relative paid a $60,000 gift tax on the transfer. Gainer later sells the apartment to Shelterer. a. What gain or loss to Gainer on his sale to Shelterer for $320,000? b. What is Shelterer's basis in the apartment?
Gainer acquired an apartment in a condominium complex by inter Vivos gift from Relative. Both used it only as a residence. It had been purchased by Relative for $200,000 cash and was given to Gainer when it was worth $300,000. Relative paid a $60,000 gift tax on the transfer. Gainer later sells the apartment to Shelterer. a. What gain or loss to Gainer on his sale to Shelterer for $320,000? b. What is Shelterer's basis in the apartment?
Chapter27: The Federal Gift And Estate Taxes
Section: Chapter Questions
Problem 41P
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Transcribed Image Text:Gainer acquired an apartment in a condominium complex by inter Vivos gift
from Relative. Both used it only as a residence. It had been purchased by
Relative for $200,000 cash and was given to Gainer when it was worth
$300,000. Relative paid a $60,000 gift tax on the transfer. Gainer later sells
the apartment to Shelterer.
a. What gain or loss to Gainer on his sale to Shelterer for $320,000?
b. What is Shelterer's basis in the apartment?
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