Question

1.

The basis of inherited property is its adjusted basis on the date of the decedent’s death (unless the alternative valuation date is elected).

Group of answer choices

True

False

2.

Mary sells a parcel of land (basis of $10,000) and receives cash of $18,000 from the buyer. In addition, the buyer assumes Mary’s mortgage of $12,000 on the land. True or False: Mary’s realized gain is $20,000.

Group of answer choices

True

False

3.

Realized gains and realized losses are disallowed on the sale of property between related parties.

Group of answer choices

True

False

Answer 1

1) true

while property is inhertied the cost is determined by considering the fair marke value as on date of decedent death

2) true

amount realissed from saales = 18000 cash+ mortage from buyer -12,000= total amount realised 30,000

cost = 10,000

gain = 30,000-10,000=20,000

3) false

they are allowed subject to rules of arm lengh price

THANKS IN ADVANCE FOR GIVING ME POSITIVE RATINGS
MAY GOD BLESS YOU
STAY HOME STAY SAFE
HAVE A WONDERFUL DAY