If Property Is Inherited by a Taxpayer

question 26

Multiple Choice

If property is inherited by a taxpayer,

• A)To the recipient, the basis for the property is the same as the basis to the decedent.
• B)At sale date, the basis of the property to the recipient differs depending on whether the property was sold at a gain or a loss.
• C)At sale date, the recipient will not have a gain or loss even if the recipient has held the property for more than a year.
• D)In general, the basis to the recipient is the fair market value at the decedent's date of death.

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Definitions:

Prices Charged

The amount of money demanded by a business in exchange for its goods or services.

Goods and Services

Products and actions that fulfill human wants or needs, with goods being tangible items and services being intangible services.

Market System

A market system is an economic system where prices and the distribution of goods and services are determined by supply and demand in a competitive market.

Goods and Services

The physical items (goods) and actions or activities (services) that people produce and consume to satisfy their needs and wants.