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In 2012, Bob Brown's Aunt Barbara Gave Him a House

question 54

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In 2012, Bob Brown's aunt Barbara gave him a house. At the time of the gift, the house had a fair market value of $193,000, the taxable gift was $180,000, and his aunt's adjusted basis was $73,000. His aunt paid a gift tax of $30,000 on the house. What is Bob's basis in the house for purposes of determining gain?


Definitions:

Variability

The extent to which data points in a statistical distribution or data set diverge from the average or mean.

Normal Distribution

A symmetrical, bell-shaped distribution of data where most of the observations cluster around the central peak and probabilities for values taper off equally on both sides.

Standard Normal Distribution

A specific probability distribution that has a mean of zero and a standard deviation of one, representing a normal distribution.

Unit of Measurement

A definite magnitude of a quantity, defined and adopted by convention or by law, that is used as a standard for measurement of the same kind of quantity.

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