In January 2015 and when the annual exclusion was $14,000, Clint makes a gift of his beach house (basis of $114,000; fair market value of $414,000) to his aunt. As a result of the transfer, Clint pays a gift tax of $20,000. The aunt dies in December 2015, when the property is worth $420,000. Under the terms of the aunt's will, the property passes to Clint. Clint's income tax basis in the beach house is:

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The Answer of In January 2015 and when the annual exclusion was $14,000, Clint makes a gift of his beach house (basis of $114,000; fair market value of $414,000) to his aunt. As a result of the transfer, Clint pays a gift tax of $20,000. The aunt dies in December 2015, when the property is worth $420,000. Under the terms of the aunt's will, the property passes to Clint. Clint's income tax basis in the beach house is:

In January 2015 and When the Annual Exclusion Was $14,000