Al owns stock with an adjusted basis of $100,000 and a fair market value of $300,000.He gives the stock to Jane on July 1,2012.When Jane dies,the fair market value of the stock is $900,000.Jane's will provides that Al is to receive the stock.Which of the following is false?
A)If Jane dies on June 1,2013,Al's basis for the stock is $100,000.
B)If Jane dies on August 1,2013,Al's basis for the stock is $900,000.
C)If Jane dies on June 15,2013,Al's basis is $300,000.
D)If Jane dies on July 1,2013,Al's basis is $100,000.
E)All of the above are true.

Question

Quizplus · Accepted Answer

If Jane dies within one year of receiving the gift, the basis of the stock for Al reverts to the original basis of $100,000, not the fair market value at the time of her death.

Al Owns Stock with an Adjusted Basis of $100,000 and a Fair