Megin sells land to her adult son, James, for its $30,000 appraised value. Her a

Question

Megin sells land to her adult son, James, for its $30,000 appraised value. Her adjusted basis for the land is $35,000. Megin’s recognized loss is $5,000 and James adjusted basis for the land is $30,000. True or false Megin sells land to her adult son, James, for its $30,000 appraised value. Her adjusted basis for the land is $35,000. Megin’s recognized loss is $5,000 and James adjusted basis for the land is $30,000. True or false Megin sells land to her adult son, James, for its $30,000 appraised value. Her adjusted basis for the land is $35,000. Megin’s recognized loss is $5,000 and James adjusted basis for the land is $30,000. True or false Megin sells land to her adult son, James, for its $30,000 appraised value. Her adjusted basis for the land is $35,000. Megin’s recognized loss is $5,000 and James adjusted basis for the land is $30,000. Megin sells land to her adult son, James, for its $30,000 appraised value. Her adjusted basis for the land is $35,000. Megin’s recognized loss is $5,000 and James adjusted basis for the land is $30,000. True or false

Explanation / Answer

Ans : False

Reason: Megin loss will be disallowed as per the applicable provision of IRs and the diallowed loss will be added in the adjusted basis for the land for james .So,

Megin’s recognized loss is NIL

James adjusted basis for the land is $ 30000+5000= $35000

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