Question

Max and Francine were married for 20 years before Francine died. Max and Francine lived in...

Max and Francine were married for 20 years before Francine died. Max and Francine lived in Texas, a community property state. Francine left all of her assets to Max when she died. Max and Francine jointly owned their residence which they had purchased for $200,000 twelve years ago. Over the years they spent $80,000 remodeling the home. When Francine died, the house was valued at $600,000. What is Max's basis in the house following Francine's death?

Homework Answers

Answer #1

The correct answer will be $600,000 [the basis is the current/fair market value].

Explanation:

Purchase price $200,000

Money spent remodeling $80,000

Value of the house $600,000

Basis=Current Value of the property,

Max's basis is thus $600,000

Under the recognition of the property and it's net value from the time of acquisition, the current value of the property that has been estimated is the basis of the property in question.This is often adjusted for the time value of money as well as the depreciation costs on the property.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Cody and Reese were married years ago and had one child, Amber. Cody and his longtime...
Cody and Reese were married years ago and had one child, Amber. Cody and his longtime friend, Kandi, were recently flying in Kandi’s new plane. For a brief period Kandi was distracted and lost control of the plane. Unfortunately, the plane crashed and Kandi died instantly and Cody died a few days later as a result of the injuries sustained during the crash. When Cody died he and Reese owned the following property: Home valued at $1,000,000 held tenancy by...
Shawn and Amy were college sweethearts and had been married for 20 wonderful years. They lived...
Shawn and Amy were college sweethearts and had been married for 20 wonderful years. They lived in Denver, Colorado. Shawn was one of three partners with the OMG! Engineering firm. Unfortunately, Shawn, a serious mountain climber, ran out of oxygen as he tried to reach the top of Mount Everest. Amy was devastated when she learned of his death and had no clue what to do next. Her friend was concerned when Amy told her they never got around to...
Cody and Reese were married years ago and had one child, Amber. Cody and his longtime...
Cody and Reese were married years ago and had one child, Amber. Cody and his longtime friend, Kandi, were recently flying in Kandi’s new plane. For a brief period Kandi was distracted and lost control of the plane. Unfortunately, the plane crashed and Kandi died instantly and Cody died a few days later as a result of the injuries sustained during the crash. When Cody died he and Reese owned the following property: • Home valued at $1,000,000 held tenancy...
Brittany and Brad have been married for 15 years. Ten years ago, they purchased a personal...
Brittany and Brad have been married for 15 years. Ten years ago, they purchased a personal residence together for $500,000. They owned the home jointly and have used it exclusively for personal-use. This year, when the home was worth $800,000, Brittany passed away. Brad now owns 100% of the home. Which of the following is most accurate? Multiple Choice There is not enough information to calculate the accumulated depreciation on the home If Brittany and Brad owned the home as...
Brittany and Brad have been married for 15 years. Ten years ago, they purchased a personal...
Brittany and Brad have been married for 15 years. Ten years ago, they purchased a personal residence together for $500,000. They owned the home jointly and have used it exclusively for personal-use. This year, when the home was worth $800,000, Brittany passed away. Brad now owns 100% of the home. Which of the following is most accurate? Multiple Choice If Brittany and Brad owned the home as community property with right of survivorship, Brad's tax basis in the home is...
Makesha and Damien were married for 9 years. They have now separated. On valuation day, Makesha...
Makesha and Damien were married for 9 years. They have now separated. On valuation day, Makesha owned the following assets:-a house owned jointly with Damien worth $600,000, which has a mortgage held jointly of $200,000 investments in her name only worth $80,000 and RRSP in her name only worth $40,000 and the silver antique tea pot she bought before she was married is now worth $20,000. At the date of marriage she had saving of $15,000 and student debt of...
Norman and Nancy Nottingham have been married for 20 years and have four children who qualify...
Norman and Nancy Nottingham have been married for 20 years and have four children who qualify as their dependents (Nelson, Nadine, Nora, and Nathanial). The couple received salary income of $190,000 and they sold their home this year. They initially purchased the home 8 years ago for $200,000 and have lived in it ever since. They sold it for $550,000. They sold some stock they had owned for 4 years and had a $3,000 gain on the sale. The Nottingham’s...
1. Phil’s father, who died on January 10, 2019. had owned stock for 20 years with...
1. Phil’s father, who died on January 10, 2019. had owned stock for 20 years with a basis of $45,000 that was transferred to Phil as a gift on August 10, 2018, when the stock was worth $430,000. Phil's father had paid no gift taxes. This stock was worth $566,000 at the date of the father’s death. Phil sold the stock for $545,000 net of commissions on February 23, 2019. What is the amount of Phil’s gain or loss from...
Demarco and Janine Jackson have been married for 20 years and have four children who qualify...
Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine Jr., Michael, and Candice). The couple received salary income of $100,000 and qualified business income of $10,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $200,000 and they sold it for $250,000. The gain on the sale qualified for the exclusion from the sale of...
Demarco and Janine Jackson have been married for 20 years and have four children who qualify...
Demarco and Janine Jackson have been married for 20 years and have four children who qualify as their dependents (Damarcus, Janine Jr., Michael, and Candice). The couple received salary income of $100,000 and qualified business income of $10,000 from an investment in a partnership, and they sold their home this year. They initially purchased the home three years ago for $200,000 and they sold it for $250,000. The gain on the sale qualified for the exclusion from the sale of...