Which of the following events causes the purchaser of an option to add the cost of the option to the basis of the property to which the option relates?

Name: Which of the following events causes the purchaser of an option to add the cost of the option to the basis of the property to which the option relates?
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Question

Quizplus · Accepted Answer

If the option is exercised,the cost of the option becomes part of the basis of the property.Otherwise,the lapse of the option is treated as a sale or exchange.

Which of the Following Events Causes the Purchaser of an Option