In April 2008,Fred gives his mother,Pearl,real estate (basis of $300,000;fair market value of $900,000).Fred paid no Federal gift tax on the transfer.Before Pearl's death in March 2009,she makes $50,000 in capital improvements to the property.The real estate is worth $940,000 when Pearl dies.What is the income tax basis of the property to Pearl's heir under each of the following assumptions?

Question

In April 2008,Fred gives his mother,Pearl,real estate (basis of $300,000;fair market value of $900,000).Fred paid no Federal gift tax on the transfer.Before Pearl's death in March 2009,she makes $50,000 in capital improvements to the property.The real estate is worth $940,000 when Pearl dies.What is the income tax basis of the property to Pearl's heir under each of the following assumptions?
In April 2008,Fred gives his mother,Pearl,real estate (basis of $300,000;fair market value of $900,000).Fred paid no Federal gift tax on the transfer.Before Pearl's death in March 2009,she makes $50,000 in capital improvements to the property.The real estate is worth $940,000 when Pearl dies.What is the income tax basis of the property to Pearl's heir under each of the following assumptions?

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The Answer of In April 2008,Fred gives his mother,Pearl,real estate (basis of $300,000;fair market value of $900,000).Fred paid no Federal gift tax on the transfer.Before Pearl's death in March 2009,she makes $50,000 in capital improvements to the property.The real estate is worth $940,000 when Pearl dies.What is the income tax basis of the property to Pearl's heir under each of the following assumptions?

In April 2008,Fred Gives His Mother,Pearl,real Estate (Basis of $300,000;fair