Jim Makes a Gift of Property Basis of $800,000; Fair

question 57

True/False

Jim makes a gift of property basis of $800,000; fair market value of $600,000) to his wife, Molly. Six months later Molly dies, and under her will, the property now worth $700,000) returns to Jim. Jim's income tax basis in the property now is $800,000.

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Definitions:

Occupiers' Liability Act

Legislation that outlines the duty of care owed by individuals or entities that control land or buildings to those who enter the premises.

Nonfeasance

The failure to perform an act that one has a duty to perform, often resulting in liability.

Defamation

The act of communicating false statements about a person that injure their reputation.

Deceit

An act of misleading or misrepresenting information to another party, often with the intent to induce them to part with something of value or to surrender a legal right.