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Business, 17.03.2020 00:04 jretes8780

In 2015, Doug Shephard's mother gave him a house. At the time of the gift, the house had a fair market value of $60,000 and his mother's adjusted basis was $82,000. His mother paid no gift tax on the gift. Doug uses the property as his residence and sells the property for 1/1/19.
What is the rule to determine Doug's basis in the house for determining gain/loss on subsequent sale?
For each of the following independent scenarios (b) through (f), determine Doug’s adjusted basis, gain or loss realized and gain or loss recognized. Include calculations and reasoning.

Doug sells the property for $50,000.
Doug sells the property for $82,000.
Doug sells the property for $90,000.
Doug sells the property for $80,000 on 1/1/19.

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In 2015, Doug Shephard's mother gave him a house. At the time of the gift, the house had a fair mark...

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