On September 18, 2018, Jerry Received Land and a Building

question 57

Essay

On September 18, 2018, Jerry received land and a building from Ted as a gift. Ted had purchased the land and building on March 5, 2015, and his adjusted basis and the fair market value at the date of the gift were as follows:
Asset Adjusted Basis FMV Land $150,000 $200,000
Building 90,000 100,000
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:

Section 33

Often referred to as the "notwithstanding clause," it allows Canadian federal or provincial governments to pass laws that temporarily override certain sections of the Charter of Rights and Freedoms.

Charter of Rights

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Inferior Bodies

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