Taylor Inherited 100 Acres of Land on the Death of His

question 11

Multiple Choice

Taylor inherited 100 acres of land on the death of his father in 2014. A Federal estate tax return was filed and this land was valued therein at $650,000, its fair market value at the date of the father's death. The father had originally acquired the land in 1968 for $112,000 and prior to his death he had expended $20,000 on permanent improvements. Determine Taylor's holding period for the land.

• A) Will begin with the date his father acquired the property.
• B) Will automatically be long-term.
• C) Will begin with the date of his father's death.
• D) Will begin with the date the property is distributed to him.
• E) None of the above.

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Definitions:

Perceptual Set

A tendency to perceive or notice some aspects of the available sensory data and ignore others, influenced by expectations or prior knowledge.

Precognition

The purported ability to foresee or have knowledge of future events before they occur.

Clairvoyance

The purported power to gather data about an object, a person, a location, or a physical happening through the use of extrasensory perception, bypassing traditional sensory channels.

Telepathy

The supposed communication of thoughts or ideas by means other than the known senses.