Joe Received a Parcel of Land as a Gift from His

question 46

Multiple Choice

Joe received a parcel of land as a gift from his sister,Lisa,in 2012.At the time of the gift,the land had a FMV of $20,000.Lisa purchased the land in 2008 for $23,000.If Joe sells the land in 2017 for $32,450,he will report a

• A)$9,450 ordinary gain.
• B)$9,450 capital gain.
• C)$12,450 capital gain.
• D)$19,540 capital gain.

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Definitions:

Family

A social unit consisting of parents and their children, considered as a group, whether dwelling together or not.

Predominant Role

The most important or influential position in a particular context or scenario.

Subsistence

A mode of livelihood in which communities sustain themselves with minimal reliance on external trade, often by farming, fishing, or hunting.

Residence

A place where a person lives or has their home.