Problemduring the current year dons aunt natalie gave him a, Ask an Expert

Accounting

Problem:

During the current year, Don's aunt Natalie gave him a house. At the time of the gift, the house had a FMV of $144,000 and his aunt's adjusted basis was $133,000. After deducting the annual exclusion, the amount of the gift was $130,000. His aunt paid a gift tax of $20,000 on the house.

Required:

What is Don's basis in the house for purposes of determining gain?

$130,000
$133,000
$134,692
$144,000

Note: Please show the work not just the answer.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91164235

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