Emma died owning real estate with a value of $500,000. Emma received the propert

Question

Emma died owning real estate with a value of $500,000. Emma received the property in 1993 as a gift from her mother, Charlotte. At the time of the gift, the property was worth $250,000. Charlotte purchased the property in 1990 for $180,000. Upon Emma's death the property passes through inheritance to jane. No estate tax return is due or files. Which of the following is TRUE about the basis of the property? -

Emma's basis in the property before her death is $180,000, and Jane's basis in the property in $500,000 -

Emma's basis in the property before her death is $250,000 and Jane's basis is $250,000 -

Emma's basisin operty $250,000 and Jane's basis $500,000

None of the above

Explanation / Answer

Abswer would be Emma's basisin operty $250,000 and Jane's basis $500,000. As per provisions of IRS, basis value on the death is taken, for Jane it will be date of her mother died and for Emma, date of death of her mother.

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