Anike received property as part of an inheritance from her father who passed away on March 10, 2015. Her father purchased the property on July 3, 2014, for $146,000. Anike sold the property on June 30, 2015, for $158,000. At the date of his death the property had a FMV of $144,000. What gain, if any, will Anike pick up on her return for 2015?

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 $144,000. She sold it for $158,000, 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