On September 18,2017,Jerry Received Land and a Building from Ted

question 4

Essay

On September 18,2017,Jerry received land and a building from Ted as a gift.Ted had purchased the land and building on March 5,2014,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:

Voir Dire

A process in court where jurors are questioned by judges and lawyers to determine if they are suitable for jury service.

Arbitration

A method of dispute resolution outside of courts where an arbitrator makes a decision which is binding to both parties.

Litigation

The process of resolving disputes or controversies by filing lawsuits in court.

Mediation

A form of alternative dispute resolution where a neutral third party helps the disputing parties come to a mutually agreeable solution.