When You Inherit an Asset Because Someone Died, Your Basis

question 38

Multiple Choice

When you inherit an asset because someone died, your basis becomes the fair market value as of the person's death. This refers to which of the following?

• A) Long-term capital gain.
• B) Short-term capital gain.
• C) Stepped-up basis.
• D) Capital asset.

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Definitions:

Retentive

Having the ability to retain or hold onto information, knowledge, or materials over a period of time.

Meditative

Pertaining to or involving meditation, a practice of focused attention to achieve a mentally clear and emotionally calm state.

Structural Configuration

The arrangement of roles, responsibilities, and relationships within an organization, determining how it is organized and how it functions.

Simple Organization Design

An organizational structure characterized by low complexity, few hierarchical levels, and wide spans of control.