Taylor inherited 100 acres of land on the death of his father in 2016.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 1970 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.
E)None of the above.

Question

Quizplus · Accepted Answer

Taylor's holding period for inherited property is automatically considered long-term, regardless of how long he actually holds it.

Taylor Inherited 100 Acres of Land on the Death of His