Barbara sells a house with an FMV of $170,000 to her daughter for $120,000. From this transaction, Barbara is deemed to have made a gift (before the annual exclusion)of
A)$50,000.
B)$170,000.
C)$120,000.
D)$0.

Question

Quizplus · Accepted Answer

The gift is the difference between the FMV of the house ($170,000) and the amount paid by the daughter ($120,000), which is $50,000. Therefore, choice A is the correct answer.

Barbara Sells a House with an FMV of $170,000 to Her