George Greco gave Harold Hudson property which George acquired ﬁve years ago for $15,000. At the time of the gift, the property's fair market value was $35,000. Harold subsequently sold the property for $40,000. What amount of gain did Harold realize?

Question

Quizplus · Accepted Answer

the basis for both gain and loss in this case is $15,000. the refore, the gain is $25,000 ($40,000 - $15,000).

George Greco Gave Harold Hudson Property Which George Acquired ﬁVe