Greg Transfers Property on August 8 of the Current Year

question 70

Multiple Choice

Greg transfers property on August 8 of the current year with an adjusted basis of $40,000 and an FMV of $90,000 to his ex-wife as a property settlement that is part of their divorce agreement. The property settlement agreement and the divorce were both finalized on June 3 of the current year. Greg has made a gift of

• A)$0.
• B)$40,000.
• C)$80,000.
• D)$90,000.