Anike received property as part of an inheritance from her father who passed away on March 10,2016.Her father purchased the property on July 3,2015,for $156,000.Anike sold the property on June 30,2016,for $168,000.At the date of his death the property had a FMV of $154,000.What gain,if any,will Anike pick up on her return for 2016?
A)$3,000 long-term gain.
B)no gain is recognized on the sale of property sold within 1 year of inheritance.
C)$14,000 short-term gain.
D)$14,000 long-term gain.

Question

Quizplus · Accepted Answer

Anike's basis in the inherited property is the fair market value at the date of her father's death, which is $154,000. She sold it for $168,000, resulting in a gain of $14,000. Inherited property is considered long-term, regardless of the holding period.

Anike Received Property as Part of an Inheritance from Her