Basis in the land to Cheryl after death of Ed
Not what you're looking for?
Ed and Cheryl have been married for 27 years. They own land jointly with a basis of $140,000. Ed dies in 2008, when the fair market value of the land is $220,000. Under the joint ownership arrangement, the land passed to Cheryl.
a. If Ed and Cheryl reside in a community property state, what is Cheryl's basis in the land?
b. If Ed and Cheryl reside in a common law state, what is Cheryl's basis in the land?
Purchase this Solution
Solution Summary
The solution compares Cheryl's basis in land after death of Ed as if in a community property state, and in a common law state.
Solution Preview
a. In a community property state, the step up in basis as a result of death of either spouse results in a step up of both halves of ownership. That is the result of the definition of community property ...
Purchase this Solution
Free BrainMass Quizzes
Balance Sheet
The Fundamental Classified Balance Sheet. What to know to make it easy.
Basics of corporate finance
These questions will test you on your knowledge of finance.
Cost Concepts: Analyzing Costs in Managerial Accounting
This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.
Business Ethics Awareness Strategy
This quiz is designed to assess your current ability for determining the characteristics of ethical behavior. It is essential that leaders, managers, and employees are able to distinguish between positive and negative ethical behavior. The quicker you assess a person's ethical tendency, the awareness empowers you to develop a strategy on how to interact with them.
Six Sigma for Process Improvement
A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.