An Uncle Gifts a Parcel of Land to His Niece,and

question 106

True/False

An uncle gifts a parcel of land to his niece,and he has to pay $25,000 of gift taxes.The land has appreciated substantially since he purchased it 20 year ago.The niece's basis in the land will be the uncle's cost plus the full $25,000 of gift taxes paid by the uncle.

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Definitions:

Extended Families

Extended families include relatives beyond the nuclear family, such as grandparents, aunts, uncles, and cousins, who often share in the caregiving and support of family members.

Grandparents

The parents of one's parents, who play varying roles in family structures from caregivers to sources of wisdom.

Nuclear Families

A family unit that includes only parents and their children, regarded as a basic social unit.

Two-Parent Homes

Households in which children are raised by both biological or adoptive parents, often associated with positive developmental outcomes for children.