Faith inherits an undivided interest in a parcel of land from her father on February 15,2016.Her father purchased the land on August 25,1989 and his basis for the land was $325,000.The fair market value of the land is $12,500,000 on the date of her father's death and is $11,000,000 six months later.The executor elects the alternate valuation date.Faith has nine brothers and sisters and each inherited a one-tenth interest.
a.What is Faith's adjusted basis for her one-tenth undivided interest in the land?
b.What is her holding period for the land?

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The Answer of Faith inherits an undivided interest in a parcel of land from her father on February 15,2016.Her father purchased the land on August 25,1989 and his basis for the land was $325,000.The fair market value of the land is $12,500,000 on the date of her father's death and is $11,000,000 six months later.The executor elects the alternate valuation date.Faith has nine brothers and sisters and each inherited a one-tenth interest.
a.What is Faith's adjusted basis for her one-tenth undivided interest in the land?
b.What is her holding period for the land?

Faith Inherits an Undivided Interest in a Parcel of Land