Harry inherited a residence from his mother when she died.The mother had a tax basis of $566,000 for the residence when she died and the residence was worth $433,000 at the date of her death.Which of the statements below is correct?
A)Harry's holding period for the residence includes his mother's holding period for the residence.
B)Harry's holding period for the residence does not include his mother's holding period for the residence.
C)Harry's holding period for the residence is automatically long term.
D)b and c
E)None of the above.

Question

Quizplus · Accepted Answer

Harry's holding period for inherited property is automatically considered long-term, regardless of the actual holding period, and it does not include the decedent's holding period.

Harry Inherited a Residence from His Mother When She Died