On September 18,2014,Jerry Received Land and a Building from Ted

question 91

Essay

On September 18,2014,Jerry received land and a building from Ted as a gift.Ted had purchased the land and building on March 5,2011,and his adjusted basis and the fair market value at the date of the gift were as follows:
Ted paid no gift tax on the transfer to Jerry.
a.Determine Jerry's adjusted basis and holding period for the land and building.
b.Assume instead that the FMV of the land was $89,000 and the FMV of the building was $60,000.Determine Jerry's adjusted basis and holding period for the land and building.

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Definitions:

Rotating Fault Blocks

geological structures that move around a vertical axis due to tectonic forces, altering the Earth's crust.

Layers Rotate

Geological process in which layers or strata of rock are tilted or turned from their original horizontal or vertical positions.

Basin and Range Province

A vast geographical area in the United States characterized by alternating basins and mountain ranges, formed by stretching of the Earth's crust.

Gulf Coast Region

A geographical area in the United States bordering the Gulf of Mexico, known for its warm climate, wetlands, and as an important area for energy production and shipping.