Suzette inherited property from her father on April 19, 2015. The FMV at the dat

Question

Suzette inherited property from her father on April 19, 2015. The FMV at the date of death was $30,600. The property was worth $26,100 six months later and had a basis to her father of $19,000. a. What is the basis of the inherited property to Suzette? (1) If the alternate valuation date was not elected? (2) If this property qualifies for using the alternate valuation date? b. Assuming that Suzette sold the property on November 1, 2015 for $36,500, what are the amount and nature of the gain? (1) If the alternate valuation date was not elected? (2) If this property qualifies for using the alternate valuation date?

Explanation / Answer

Ans1: Since the FMV value at the date of death was $30600 threfore basis of the inherited property shall be $30600.

Ans 2 if property is qualified for using the alternate valuation date then the basis of the property shall be $26100

ANs 3 if alternate valuation date is not elected then gain shall be long term gain and i shall be $36500-$30600=$5900

Ans4if property is qualified for using the alternate valuation date then long term gain shall be $36500-$26100 = $10400

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