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Abner, age 80 and in poor health, owns investment land with an adjusted basis of $50,000. He is considering transferring it to Stella, his niece. Regarding Stella's income tax position, should the transfer to her be by gift or by inheritance? (Assume neither gift tax nor estate tax would be due, and that the property is not expected to change in value.)

A) Only a. and c. are correct.

B) If the fair market value of the land is $200,000, the transfer should be by inheritance.

C) If the fair market value of the land is $10,000, the transfer should be by gift.

D) If the fair market value of the land is $50,000, the transfer can be either by gift or by inheritance (i.e., the tax consequences are the same).

E) a., b., and c. are correct.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9416838

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