R2

Question 1

What is the basis of property to a donee if the selling price results is less than the gain basis but more than the loss basis?

Answer 1

$0

Question 2

General Rule for donee basis of gifted property is that the basis will rollover unless _______.

Answer 2

FMV OF DATE OF GIFT IS LOWER THAN DONOR BASIS

Question 3

Gifted property basis for a GAIN:
Selling Price ___ Donor Basis

Answer 3

>

Question 4

Gifted property basis for a LOSS:
Selling Price ___ FMV at Gifted Date

Answer 4

<

Question 5

____a____ $0 ____b____

____c____ > Selling Price > ____d____

Answer 5

a: LOSS
b: GAIN
c: FMV AT GIFT DATE
d: DONOR BASIS

Question 6

How much depreciation is allowed for a MARCS depreciable asset, if it is disposed of during a year before the full depreciable life was used?

Answer 6

50% OF THE MARCS PERCENTAGE