20 years ago Paul purchased Land for $100,000. In 2021, he sold land to his brother for $150,000. However, the FMV appraised at $190,000.
If it has any bearing on the transaction, Paul has NOT made a gift to his brother in 2021 of $15,000 or any other amount. Neither Paul nor his brother are married.
Question:
1. How much long-term capital gain must Paul report from this transaction?
2. What is the basis in the land for his brother after the transaction?
If it has any bearing on the transaction, Paul has NOT made a gift to his brother in 2021 of $15,000 or any other amount. Neither Paul nor his brother are married.
Question:
1. How much long-term capital gain must Paul report from this transaction?
2. What is the basis in the land for his brother after the transaction?
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