Jacqueline Dies While Owning a Building with a $1,000,000 FMV

question 21

Essay

Jacqueline dies while owning a building with a $1,000,000 FMV. The building is classified as Sec. 1245 property acquired in 1985 for $850,000. Cost- recovery deductions of $850,000 have been claimed. Pam inherits the proper
a. What is the amount of Pam's basis in the property?
b. What is the amount of cost- recovery deductions that Pam must recover if she immediately sells the building

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Definitions:

Reasonable Apprehension

A justified fear or expectation based on objective circumstances or evidence.

Assault

A civil wrong that occurs when one person intentionally and voluntarily places another in fear or apprehension of an immediate, offensive physical harm. Assault does not require actual contact.

Private Nuisance

A nuisance that affects only a single individual or a very limited number of individuals.

Strict-Liability Tort

A civil wrong that occurs when a defendant takes an action that is inherently dangerous and cannot ever be undertaken safely, no matter what precautions the defendant takes. The defendant is liable for the plaintiff’s damages without any requirement that the plaintiff prove that the defendant was negligent.