Bob Bixby gave his daughter, Jane, his personal residence with an adjusted basis to him of $260,000 and a fair market value of $250,000. Jane lived in the house for two years and then sold it for $240,000. As a result of the sale, Jane will:

Question

Quizplus · Accepted Answer

the basis for determining loss is the lesser fair market value of $250,000. the refore, although Jane realized a
$10,000 loss ($240,000 less $250,000), this is not recognized because losses on the sale of personal-use assets are not recognized

Bob Bixby Gave His Daughter, Jane, His Personal Residence with an Adjusted