Doug receives a duplex as a gift from his uncle. The uncles basis for the duplex and land is $90,000. At the time of the gift, the land and building have FMV of $40,000 and $80,000, respectively. No gift tax is paid by Dougs uncle at the time of the gift. A. To determine gain, what is Dougs basis for the land? B. To determine gain, what is Dougs basis for the building? C. Will the basis of the land and building be the same as in Parts a and b for the purposes of determining loss?

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6 Dec 2023 susan

Doug receives a duplex as a gift from his uncle. The uncles basis for the duplex and land is $90,000. At the time of the gift, the land and building have FMV of $40,000 and $80,000, respectively. No gift tax is paid by Dougs uncle at the time of the gift. A. To determine gain, what is Dougs basis for the land? B. To determine gain, what is Dougs basis for the building? C. Will the basis of the land and building be the same as in Parts a and b for the purposes of determining loss?

Chapter 5: Problem I: 5-34 Basis of PropertyReceived as a Gift
Doug receives a duplex as a gift from his uncle. The uncles basis for the duplex and land is $90,000. At the time of the gift, the land and building have FMV of $40,000 and $80,000, respectively. No gift tax is paid by Dougs uncle at the time of the gift.
A. To determine gain, what is Dougs basis for the land? B. To determine gain, what is Dougs basis for the building? C. Will the basis of the land and building be the same as in Parts a and b for the purposes of determining loss?