Beth sells investment land (adjusted basis of $225,000) that she has owned for 6 years to her husband, Richard, for its fair market value of $195,000.

a. Calculate Beth's recognized gain or loss.

b. Calculate Richard's basis for the land.
c.
How would your answers in a. and b. change if Beth and Richard were not married (i.e., merely good friends)?

d. Would the answer in a. and b. change if the selling price was $270,000?

Question

Beth sells investment land (adjusted basis of $225,000) that she has owned for 6 years to her husband, Richard, for its fair market value of $195,000.
​
a. Calculate Beth's recognized gain or loss.
 
b. Calculate Richard's basis for the land. 
c.
How would your answers in a. and b. change if Beth and Richard were not married (i.e., merely good friends)?
 
d. Would the answer in a. and b. change if the selling price was $270,000?

Quizplus · Accepted Answer

The Answer of Beth sells investment land (adjusted basis of $225,000) that she has owned for 6 years to her husband, Richard, for its fair market value of $195,000.
​
a. Calculate Beth's recognized gain or loss.
 
b. Calculate Richard's basis for the land. 
c.
How would your answers in a. and b. change if Beth and Richard were not married (i.e., merely good friends)?
 
d. Would the answer in a. and b. change if the selling price was $270,000?

Beth Sells Investment Land (Adjusted Basis of $225,000) That She