question archive Majoo inherited property from his uncle on August 15, 2019
Majoo inherited property from his uncle on August 15, 2019
Subject:LawPrice:2.84 Bought7
Majoo inherited property from his uncle on August 15, 2019. His uncle purchased the property on December 10, 2017 for $100,000. At the date of his death, the property's FMV was $102,000. Majoo sold the property on September 30, 2019 for $105,000.
1)What is the gain on the sale of the property?
2)What is the nature of the gain?
Purchase A New Answer
Custom new solution created by our subject matter experts
GET A QUOTE
Answer Preview
Answers.
Step-by-step explanation
1-
Majoo's basis is the FMV on his uncle's date of death.
Therefore,
$105,000 - $102,000 = $3,000 gain
2-
It is a long term gain. If you sell or dispose of inherited property that is a capital asset, you have a long-term gain or loss on property held for more than 1 year, regardless of how long you have held the property.
