In 2016,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.

Question

Quizplus · Accepted Answer

The fair market value of the land is $100,000 but it was sold for only $50,000, which means José made a gift of $50,000 to his daughter. This gift should be reported on a gift tax return, and if José has used up his lifetime exclusion amount, he may owe gift tax.

In 2016,José,a Widower,sells Land (Fair Market Value of $100,000)to His