Travis and Kim Acquire Land in 1985 for $900,000 with Travis

question 33

Essay

Travis and Kim acquire land in 1985 for $900,000 with Travis furnishing $300,000 and Kim $600,000 of the purchase price. Title to the property is listed as equal joint tenancy with right of survivorship. Kim dies first in 2013, when the land is worth $3,000,000. What is Travis's income tax basis in the property under each of the following assumptions?
a. Travis and Kim are brother and sister.
b. Travis and Kim are husband and wife.
c. Travis and Kim are husband and wife and the land is community property.

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Definitions:

Game Theory

The study of mathematical models of strategic interaction among rational decision-makers.

Tit-for-Tat

A strategy in repeated games where a player replicates the opponent's previous action, often used in the context of cooperative behaviors or retaliatory tactics.

Prisoners' Dilemma Game

A standard example of a game analyzed in game theory that shows why two individuals might not cooperate, even if it appears that it is in their best interest to do so.

Tit-for-Tat Strategy

A reciprocal strategy in game theory where an entity responds to an action with a similar action, promoting cooperation.