The Basis of Inherited Property Is

question 172

Multiple Choice

The basis of inherited property is

• A)the cost of the property to the donor.
• B)the fair market value reported on the estate tax return.
• C)the fair market value minus the cost of the property.
• D)the fair market value plus the cost of the property.
• E)none of these.

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Definitions:

Financial Lease

A type of lease where the lessee has use of an asset through its useful life, often with ownership transferring at the end.

Fully Amortized

Refers to a loan where the principal and interest are paid off completely over the loan term.

Lessor's Cost

The expenses incurred by a lessor (the property owner) when leasing out an asset, including maintenance, taxes, and any other costs related to the asset's upkeep.

Operating Lease

Usually a shorter-term lease where the lessor is responsible for insurance, taxes, and upkeep. Often cancellable on short notice.