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During the Current Year, Don's Aunt Natalie Gave Him a House

question 1585

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During the current year, Don's aunt Natalie gave him a house. At the time of the gift, the house had a FMV of $145,000 and his aunt's adjusted basis was $134,000. After deducting the annual exclusion, the amount of the gift was $130,000. His aunt paid a gift tax of $20,000 on the house. What is Don's basis in the house for purposes of determining gain?


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Police Officer

A member of the police force or department, legally vested with the powers to maintain peace, prevent crime, and enforce laws.

Crime In Progress

A crime that is currently happening or underway.

Gratuitous Promise

A pledge or promise made without expecting anything in return, often lacking legal enforceability.

Reasonable Price

refers to a price that is fair and sensible in the context of the market value of a good or service, taking into consideration factors like cost, demand, and quality.

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