If property is inherited by a taxpayer,

a. In general, the basis to the recipient is the fair market value at the decedent's date of death.

b. At sale date, the basis of the property to the recipient differs depending on whether the property was sold at a gain or a loss.

c. To the recipient, the basis for the property is the same as the basis to the decedent.

d. At sale date, the recipient will not have a gain or loss even if the recipient has held the property for more than a year.

Question

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Livia

18 January, 15:33

If property is inherited by a taxpayer,

a. In general, the basis to the recipient is the fair market value at the decedent's date of death.

b. At sale date, the basis of the property to the recipient differs depending on whether the property was sold at a gain or a loss.

c. To the recipient, the basis for the property is the same as the basis to the decedent.

d. At sale date, the recipient will not have a gain or loss even if the recipient has held the property for more than a year.

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Answers (1)

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Aryana Cross · Answer 1

Correct option is A.

In general, the basis to the recipient is the fair market value at the decedent's date of death.

Explanation:

If property is inherited by a taxpayer, In general, the basis to the recipient is the fair market value at the decedent's date of death.

As per the the law when property is transferred on account of death, then basis to the recipient is the fair market value at the time of death of decedent's.