Question

Angelina gave a parcel of realty to Julie valued at $133,750 (Angelina purchased the property five years ago for $57,500). Required: Compute the amount of the taxable gift on the transfer, if any. Suppose several years later Julie sold the property for $139,350. What is the amount of her gain or loss, if any, on the sale?

A: Amount of Taxable Gift:

B. Amount of Gain-?

Amount of Loss-?

a. Amount of taxable gift b. Amount of gain Amount of loss

Answer 1

As pon hift tax laws any property gifted to any one if it's value is more than 15,000 the transferera) gift giver has to pay tax on such value of gifted property In the realty to more than given case Angelina gifted a pared of Julie value of such property is $1,000 il $133,750. such value of property is taxable (since it is $100000 to $150,000 at 30%. bracket. D Amount of taxable gift is $133,750. 6 Jule sold for $ 139, roo such propenty several years later $5,750 Amount of capital Gain is ($139,500 - $132750) since, in the band of Angelina $133, 700 is toxable

amount, so in the difference gain fie is only taxable. hands of over such Julie only value of property Therefore, @ Amount of taxable (6) Amount of gain gift $133,750 and 5750.