During the current year, Stan sells a tract of land for $800,000. The

QUESTION

During the current year, Stan sells a tract of land for $800,000. The property was received as a gift from Maxine on March 10, 1995, when the property had a $310,000 FMV. The taxable gift was $300,000 because the annual exclusion was $10,000 in 1995. Maxine purchased the property on April 12, 1980, ¦
The sale price of the propertyis fmv 800000 adjusted price of the property 310000 gift tax 300000 value of the property 312000 a.) gain on sale = sale price -value of the property 800000-312000 = 488000 b.) here the fairmarket¦

value of the property is 850000 as on the date of the gift , but adjusted value is 3000000 so the gain on sale of the property is 800000-312000 =4880000

ANSWER:

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