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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- On July 1, 2019, Ted, age 73 and single, sells his personal residence of the last 30 years for $368,000. Ted's basis in his residence is $48,776. The expenses associated with the sale of his home total $22,080. On December 15, 2019, Ted purchases and occupies a new residence at a cost of $175,000. Calculate Ted's realized gain, recognized gain, and the adjusted basis of his new residence. Realized gain $ Recognized gain $ Adjusted basis of the new residence $Clara received from her Aunt Sona property with a FMV at the date of the gift of $30,000. Aunt Sona purchased the property five years ago for $35,000. If Clara sold the property for $33,000, what is her gain or loss on the sale?Bobby owned a building with a fair market value of $2,000,000. Bobby's adjusted basis in the building was $1,000,000. Bobby agreed to sell the building to his son, Robby for $1,300,000. What is the amount of Bobby's taxable gift? Assume the annual gift tax exclusion is $15,000. Bobby has made a taxable gift of $700,000 Bobby has made a taxable gift of $685,000 Bobby has made a taxable gift of $2,000,000 Bobby has not made a taxable gift
- Tori owns a nondepreciable capital asset held for investment. The asset was purchased for $400,000 six years earlier and is now subject to a $70,000 liability. During the current year, Tori transfers the asset to Travis in exchange for $125,000 cash and a new automobile with a $20,000 fair market value (FMV) to be used by Tori for personal use; Travis assumes the $70,000 liability. Requirement Determine the amount of Tori's long-term capital gain (LTCG) or long-term capital loss (LTCL). (Use parentheses or a minus sign to enter a loss.) Tori will realize a long-term capital gain or loss ofHarold and Maude were married and lived in a common-law state. Maude died in 2018 with a taxable estate of $25.80 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 $25.80 million to their three children. 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.Randy established a trust, reserving in himself the power to terminate the trust if he is not satisfied with its operation. After two years, the power to terminate the trust expires. Randy transferred commercial real estate into the trust and specified that the income be payable annually for the benefit of his adult daughter, Michelle. Randy died one year after creation of the trust instrument. One estate tax implication for Randy of this trust is that the trust property is A) included in his estate because a family member is receiving a benefit from the trust. B) not included in his estate because a transfer for the benefit of a minor is exempt from tax. C) included in Randy's estate because he still had the power to terminate the trust at his death. D) not included in his estate because the power to terminate the trust eventually expires.
- Tavon dies and is survived by his wife, Marge. Under Tavon’s will, all of his otherwise uncommitted assets pass to Marge. For each of the following property interests, determine the marital deduction allowed to Tavon’s estate. 4. Insurance policy on Tavon’s life (maturity value of $500,000) owned by Tavon with Marge as the designated beneficiary. 5. Distribution from a qualified pension plan of $1,600,000 (Tavon matched his employer’s contribution of $500,000) with Marge as the designated beneficiary.Dan receives a duplex as a gift from his uncle. The uncle's basis for the duplex and land is $110,000. At the time of the gift, the land and building have FMVS of $64,000 and $96,000, respectively. No gift tax is paid by Dan's uncle at the time of the gift. Read the requirements. Requirement a. To determine gain, what is Dan's basis for the land? (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) To determine gain, Dan's (the donee's) basis for the land is Requirement b. To determine gain, what is Dan's basis for the building? (Do not round intermediary calculations. Only round the amount you input in the cell to the nearest dollar.) To determine gain, Dan's (the donee's) basis for the building is Requirement c. Will the basis of the land and building be the same as in Parts a and b for purposes of determining a loss? , the basis of the land and building the same as in Parts a and b for purposes of determining a loss becauseJuliana purchased land three years ago for $90,100. She made a gift of the land to Tom, her brother, in the current year, when the fair market value was $126,140. No Federal gift tax is paid on the transfer. Tom subsequently sells the property for $113,526. a. Tom's basis in the land is $ 90,100 V and he has a realized gain -v of $ 23,246 x on the sale. b. Assume, instead, that the land has a fair market value of $81,090 on the date of the gift, and that Tom sold the land for $77,036. Tom's basis in the land is $ 113,256 x and he has a realized loss V of 12,614 X on the sale.
- Assume Darrin transfers ownership of the life insurance policy on his life to an Irrevocable Life Insurance Trust (ILIT) and retains the right to borrow against the policy. Assume Darrin dies five years later. Which of the following is correct regarding the treatment of the proceeds of the life insurance policy? O The proceeds will always be included in Darrin's federal gross estate. The proceeds will be included in Darrin's federal gross estate if he has any outstanding loans against the life insurance policy. O The proceeds will be included in Darrin's federal gross estate if Darrin continued paying the policy premiums after the life insurance policy was transferred to the ILIT. O The proceeds will never be included in Darrin's federal gross estate.Kase, an individual, purchased some property in Potomac, Maryland, for $166,000 approximately 10 years ago. Kase is approached by a real estate agent representing a client who would like to exchange a parcel of land in North Carolina for Kase's Maryland property. Kase agrees to the exchange. What is Kase's realized gain or loss, recognized gain or loss, and basis in the North Carolina property in each of the following alternative scenarios? Note: Loss amounts should be indicated by a minus sign. Leave no answers blank. Enter zero if applicable. b. The transaction qualifies as a like-kind exchange, and the fair market value of each property is $101,000.Mr. and Mrs. Zikalasa, both resident citizens, had the following data on the death of Mr. Sta Cruz in 2019: Exclusive property of husband, P2,720,000 Exclusive property of wife, P1,250,000 Conjugal property of couple, P4,800,000 Ordinary deduction on property of husband, P1,290,000 Ordinary deduction on property of wife, P560,000 Ordinary deduction on conjugal property of couple, P1,300,000 How much is the gross estate?