Taylor inherited 100 acres of land on the death of his father in 2019.A Federal estate tax return was filed and this land was valued therein at $650,000, its fair market value at the date of the father's death.The father had originally acquired the land in 1973 for $112,000 and prior to his death, he had expended $20,000 on permanent improvements.Determine Taylor's holding period for the land.
A)Will begin with the date his father acquired the property.
B)Will automatically be long term.
C)Will begin with the date of his father's death.
D)Will begin with the date the property is distributed to him.

Question

Quizplus · Accepted Answer

The holding period for inherited property begins with the date the decedent acquired the property.

Taylor Inherited 100 Acres of Land on the Death of His