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Lisa sells business property with an adjusted basis of $130,000 to her son, Alfred, for its...

Lisa sells business property with an adjusted basis of $130,000 to her son, Alfred, for its fair market value of $100,000. a. What is Lisa’s realized and recognized gain or loss? b. What is Alfred’s recognized gain or loss if he subsequently sells the property for $138,000? For $80,000?

Note: please provide answers and explanations in Word or Excel format. I would appreciate it.

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Answer #1
a) When Lisa sells at $100000
Lisa Sells to her son Alfred $
Adjusted basis 130000
Sales Value(FMV) 100000
Capital gain(loss) (30000)
Lisa can also gift the property to her son Alfred. In both case there is no capital gain
b) When Alfred sells @ $138000
Alfred sell it subsequently $
Adjusted basis 100000
Sales Value(FMV) 138000
Capital gain(loss) 38000
b) When Alfred sells @ $ 80000
Alfred sell it subsequently $
Adjusted basis 100000
Sales Value(FMV) 80000
Capital gain(loss) (20000)
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