Hilary Receives $10,000 for a 15-Foot Wide Utility Easement Along

question 178

Essay

Hilary receives $10,000 for a 15-foot wide utility easement along one of the boundaries to her property. The
easement provides that no structure can be built on that portion of the property. Her adjusted basis for the property is
$200,000 and the easement covers 15% of the total acreage. Determine the effect of the $10,000 payment on
Hilary's gross income and her basis for the property.

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Definitions:

Nonverbal Signs

Forms of communication without words, including gestures, facial expressions, and body language, that convey messages.

Workplace Diversity

The inclusion of individuals of varying gender, race, ethnicity, age, sexual orientation, religion, and other attributes in a professional setting.

Teleconferencing

The use of telecommunications technology to facilitate meetings or discussions among participants in different locations.

Unique Attitude

A distinctive perspective or way of thinking that sets an individual apart from others.