Neelam died leaving her estate to her cousin Mary. At the time of her death Neel

Question

Neelam died leaving her estate to her cousin Mary. At the time of her death Neelam owned a diamond ring purchased by her grandmother Bertha for 5000. When Bertha died the ring had passed to Neelams father Tom. At the time of death the ring was worth 10000. Tom then spent $700 to have the ring remounted. It was valued 13000 at the time of Toms death. At the time of Neelams death, the ring was with 18000. Mary’s basis in the ring was

Neelam died leaving her estate to her cousin Mary. At the time of her death Neelam owned a diamond ring purchased by her grandmother Bertha for 5000. When Bertha died the ring had passed to Neelams father Tom. At the time of death the ring was worth 10000. Tom then spent $700 to have the ring remounted. It was valued 13000 at the time of Toms death. At the time of Neelams death, the ring was with 18000. Mary’s basis in the ring was

Neelam died leaving her estate to her cousin Mary. At the time of her death Neelam owned a diamond ring purchased by her grandmother Bertha for 5000. When Bertha died the ring had passed to Neelams father Tom. At the time of death the ring was worth 10000. Tom then spent $700 to have the ring remounted. It was valued 13000 at the time of Toms death. At the time of Neelams death, the ring was with 18000. Mary’s basis in the ring was

Explanation / Answer

As per IRS, the basis of property inherited from a decedent is the fair value of the property on the date of death of decendent. In the given problem, on the date of death of Neelam(decendent) the fair value of the ring was $18000. Mary’s basis in the ring was $18000

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