American College Exam HS330 Topic 1 Question 85 Discussion

Actual exam question for American College's HS330 exam

Question #: 85
Topic #: 1

A father bought stock for $100,000 and gave it to his son when it was worth $300,000. The father paid no gift tax on the transfer. When the son sold the property 2 years after the gift, his income tax basis was

B$100,000

C$200,000

D$300,000

Show Suggested Answer

Suggested Answer: D

by Emilio at Apr 25, 2024, 09:12 PM

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Hannah

9 days ago

Hmm, I'm not so sure. Doesn't the son inherit the full market value as the basis when it's gifted? I'll go with D.

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Filiberto

14 days ago

I agree, the son's income tax basis should be $300,000.

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Galen

16 days ago

Oh, I think the answer is B. The basis is the original cost to the father, which was $100,000.

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Shawnta

2 days ago

I think the answer is B. The basis is the original cost to the father, which was $100,000.

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Chana

20 days ago

I believe it was $300,000 since that was the value when he received it.

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Aliza

25 days ago

What do you think the son's income tax basis was?

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