In 2015,José,a widower,sells land (fair market value of $100,000) to his daughter,Linda,for $50,000.José has not made a taxable gift.

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The sale of the land for less than fair market value represents a gift to the daughter. Therefore, José would need to file a gift tax return and potentially owe gift tax on the $50,000 difference between the sale price and fair market value.

In 2015,José,a Widower,sells Land (Fair Market Value of $100,000) to His