Question

Angelina gave a parcel of realty to Julie value at $201,250 (Angelina purchased the property five...

Angelina gave a parcel of realty to Julie value at $201,250 (Angelina purchased the property five years ago for $84,500)

Required:

A. Compute the amount of the taxable gift on the transfer, if any.

B. Suppose several years later Julie sold the property for $208,650. What is the amount of her gain or loss, if any on the sale?
a. Amount of taxable gift
b.
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Answer #1
Value of Gift = $       2,01,250
Less: Annual exclusion = $           15,000
Amount of taxable gift = $       1,86,250
[Note: In question year not mentioned , therefore taking the current amount of annual exclusion]
Property sold for = $       2,08,650
Less: Purchase Price = $           84,500
Gain (loss) on sale = $       1,24,150
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