Mark owns a vacation home in Florida that he purchased in 1992 for $120,000.The vacation home now has a value of $500,000.If Mark gifts the home to Glenn,the basis to Glenn will be

Name: Mark owns a vacation home in Florida that he purchased in 1992 for $120,000.The vacation home now has a value of $500,000.If Mark gifts the home to Glenn,the basis to Glenn will be
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Question

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When a property is gifted, the recipient (Glenn) generally takes on the donor's (Mark's) original basis, which is $120,000 in this case.

Mark Owns a Vacation Home in Florida That He Purchased