On september 30 of last year, rex received some investment land from holly as a gift. holly’s adjusted basis was $50,000 and the land was valued at $40,000 at the time of the gift. holly acquired the land five years ago. what is the amount and character of rex's recognized gain (loss) if he sells the land on may 12 this year at the following prices? a) $32,000b) $70,000c) $45,000

A) On the 32,000 sale it will be considered a 18,000 gift to the buyer.

Because is above the 15,000 gift per person per year, it will trigger the gift tax.

B) 70,000 will generate a long-term capital gain of 20,000

C) gift of 5,000 it will not trigger the gift tax.

Explanation:

When the sale is below market value, it is treated as a gift to the buyer.

The capital gain or losses are considered using the adjusted basis.

Because Holly acquiredthe land for more than a year, it will be cosnidered a long-term capital gain if any.

being suspected of supplying drugs means you are much more likely to be charged. the amount of drugs found on you, and whether you have a criminal record, will be taken into account when a punishment is being decided.

decisions to prosecute are taken by the public prosecution service. the maximum sentences for intent to supply drugs are:

answer; schedule c;