What is Ashley’s adjusted basis of the property?
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Ashley inherited all of the property of her aunt Elena, who died last year. Elena’s adjusted basis for the property at the date of death was $1,200,000. The property's fair market value was $4,500,000 at the date of death and $4,800,000 six months after the date of death. Assume that an estate return is filed.
What is Ashley’s adjusted basis of the property?
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- Mr. Ito, an unmarried individual, made a gift of real estate to his son. Assume the taxable year is 2023. Required: a. Compute the amount subject to federal gift tax when the FMV of the real estate was $4.75 million, and the transfer was Mr. Ito's first taxable gift. b. Compute the amount subject to federal gift tax when the FMV of the real estate was $15 million, and the transfer was Mr. Ito's first taxable gift. c. Compute the amount subject to federal gift tax when the FMV of the real estate was $15 million. Two years ago, Mr. Ito made his first taxable gift marketable securities with a $3 million FMV in excess of the annual exclusion. X Answer is complete but not entirely correct. Complete this question by entering your answers in the tabs below. Required A Required B Compute the amount subject to federal gift tax when the FMV of the real estate was $15 million, and the transfer was Mr. Ito's first taxable gift. Note: Enter your answer in dollars and not in millions of dollars.…O Sebastian originally sold his home in an installment sale for $300,000. At the time, his adjusted basis in the home was $220,000. He qualified for the Section 121 principal residence exclusion, so his gain was not included in his taxable income for the year of sale. Three years later, he repossessed the home from the buyer when the balance of the note was $275,000. He spent $8,000 on improvements and resold it within the year for $320,000. What is Sebastian's recomputed adjusted basis in the property? $228,000 $258,000 $278,000 $308,000During the current year, Jeff sells a tract of land for $700,000. The property was received as a gift from Corina on March 10, 1995, when the property had a $240,000 FMV. The taxable gift was $230,000 because the annual exclusion was $10,000 in 1995. Corina purchased the property on April 12, 1980, for $56,000. At the time of the gift, Corina paid a gift tax of $10,000. In order to sell the property, Jeff paid a sales commission of $14,000. Read the requirements. Requirement a. What is Jeff's realized gain on the sale? Select the formula, then calculate Jeff's realized gain on the sale. (Do not round intermediary calculations. Only round the amounts you input in the cells to the nearest dollar.) Minus: Realized gain Requirement b. How would your answer to Part a change, if at all, if the FMV of the gift property was $50,000 as of the date of the gift? If the FMV of the gift property was $50,000 as of the date of the gift, Stan would have realized a gain on the sale of
- Jacob owns a modest house on a large, ocean-front lot in a region where development is booming. Seeking to cap his estate-tax exposure, Jacob sells a remainder interest in the property to Alice — Jacob’s committed partner to whom he is not married — for its actuarial value. Jacob continues to reside in the property pursuant to his retained life estate for the remainder of his lifetime. At the time of the sale of the remainder, the fee interest was valued at $3 million, and the remainder was valued at $1 million. Upon Jacob’s death five years later, the value of the property had increased to $5 million. Discuss the estate tax consequences to Jacob’s estate.Moran owns a building he bought during year 0 for $198,000. He sold the building in year 6. During the time he held the building, he depreciated it by $50,000. What are the amount and character of the gain or loss Moran will recognize on the sale in each of the following alternative situations? Note: Loss amounts should be indicated by a minus sign. Enter NA if a situation is not applicable. Leave no answer blank. Enter zero if applicable. b. Moran received $213,000.Thomas and Courtney are married, and they will file a joint return. In 2023, they sold an undeveloped plot of land. They had purchased the land in 2018 as an investment. Unfortunately, the value of the land decreased, and they incurred a $5,000 loss at the time of sale. They had no other capital gains or losses during the year, and they had no prior-year carryover losses. How much of the loss from the sale of the land may the couple use to offset their 2023 ordinary income? $0 $1,500 $3,000 $5,000
- Nathaniel has AGI (before any rental loss) of $65,000. He also owns several rental properties in which he actively participates. The rental properties produced a $30,000 loss in the current year. Nathaniel also has $5,000 of income from a limited partnership interest. How much, if any, of the rental loss can he deduct in the current year?Assume that in 2021, Anthony sells all of his stock in Benson's Animal Care Center to Nicole for $1 million. All of the following statements regarding this sale are correct except A) the stock will be included in Anthony's gross estate when he dies. B) this transaction is a bargain sale. C) Anthony makes a gift of $1.25 million as a result of the transaction. D) Anthony realizes a taxable gain of $975,000 as a result of the transaction. A) the stock will be included in Anthony's gross estate when he dies. ?oberto and Deanna live in Texas, a community property state. They purchased land as community property in 1985 for $60,000, each contributing $30,000. Deanna died and bequeathed her share of the land to Roberto. The land had a fair market value of $88,000 on Deanna's date of death. What is Roberto's total adjusted basis in the land after Deanna's death? A. $88,000 B. $30,000 C. $44,000 D. $60,000
- Several years ago, Georgia transferred $500,000 of real estate into an irrevocable trust for her son, Lee. The trustee was directed to retain income until Lee's 21st birthday and then pay him the corpus of the trust. Georgia retained the power to require the trustee to pay income to Lee at any time and the right to the assets if Lee predeceased her. What amount of the trust, if any, will be included in Georgia's estate if she dies this year when the value of the real estate in trust is $700,000? Amount to be included in Georgia's estateHarold and Maude were married and lived in a common-law state. Maude died in 2018 with a taxable estate of $26.00 million and left it all to Harold. Maude's executor filed a timely estate tax return claiming the marital deduction for the property left to Harold including a valid portability election. Harold died this year, leaving the entire $26.00 million to their three children. (Refer to Exhibit 25- 1 and Exhibit 25-2.) Calculate how much estate tax is due from Harold's estate under the following two alternatives. a. Assume that neither Harold nor Maude had made any taxable gifts prior to this year. b. Assume that Harold and Maude each made a $1 million taxable gift in 2011 and offset the gift tax at that time with the applicable credit. Estate tax if no taxable gifts were made Estate tax if taxable gifts were made $ 5,928,000 $ 0Barbara sold land she purchased three months earlier for use in her business. Her cost and adjusted basis in the land prior to the sale were $80,000. She also incurred $10,000 in expenses related to the sale. The buyer paid $80,000 cash and assumed barbarous 20,000 mortgage on the property. What is the amount of Barbara's gain, and where on form 4797 will she report the sale?