emma died owning real estate with a value of $500000. Emma received the property

Question

emma died owning real estate with a value of $500000. Emma received the property in 1994 as a gift from her mother, charlotte. At the time of the gift, the property was worth $250000. charlotte purchased the property in 1991 fpr $180000. Upon Emma's death, the property passes through inheritance to Jane. No state tax return is due to be filed. which of the folowing is true about the basis of the property?

a. emma's basis in the property before her death is $180000 and Jane's basis in the property is $500000

b Emma's basis in the property efoe her death is $250000 and jane's babis is $250000

c. Emma's basis in the property before her death is $250000 and Jane's babis is $500000

d. none of the above

Explanation / Answer

The correct option is b.) Emma's basis in the property before her death is $250000 and Jane's basis is $250000. As Emma received the real estate property from her mother Charlotte as gift, therefore her basis in the property should be fair market value of the property at the time of gift (i.e.$250000). Jane had inherited the property from her mother Emma on the death of her mother, therefore the basis of Emma in the property before her death will be the basis of Jane in the property i.e. $250000

Related Questions

Navigate

• Browse (All)
• Browse E
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.