Rita died on January 1,2013 owning an asset with a FMV of $730,000 that she purchased in 2007 for $600,000.Bert inherited the asset from Rita.When Bert sells the asset for $800,000 on August 20 of this year,he must recognize a

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Bert inherited the asset from Rita, so his basis in the asset is the same as Rita's basis, which is $600,000. When Bert sells the asset for $800,000, he has a gain of $200,000. Since Bert held the asset for more than one year, the gain is a long-term capital gain.

Rita Died on January 1,2013 Owning an Asset with a FMV