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Discussion
31/03/2022
Betty incurs the following transaction during the current year
Betty incurs the following transaction during the current year. Without considering the transaction, her 2013 AGI is $ 40,000. Analyze the transaction and answer the following questions:
On March 10, 2013, she sells a printing for $ 2,000. Betty is the artist, and she completed the painting in 2008. Her basis for the painting is $ 50.
On June 18, 2013, she receives $28,500 from the sale of stock purchased by her uncle in 2000 for $ 10,000, which she inherited on February 20, 2013, as a result of her uncle’s death. The stock’s FMV on date is $ 30,000.
On July 30, 2013, she sells land for $25,000 that was received as a gift from her brother on April 8, 2013, when the land’s FMV was $ 30,000. Her brother purchased the land for $43,000 on October 12, 2005. No gift tax was paid.
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