True about the basis of the property

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Reference no: EM132001275

1. Emma died owning real estate with a value of $500,000. Emma received the property in 1994 as a gift from her mother, Charlotte. At the time of the gift, the property was worth $250,000. Charlotte purchased the property in 1991 for $180,000. Upon Emma's death, the property passed through inheritance to Jane. No estate tax return (Form 706) is due or filed. Which of the following is true about the basis of the property?

a. Emma's basis in the property before her death is $180,000, and Jane's basis in the property is $500,000

b. Emma's basis in the property before her death is $250,000, and Jane's basis in the property is $250,000

c. Emma's basis in the property before her death is $250,000, and Jane's basis is $500,000

d. None of the above

2. When is it appropriate to prepare Form 7004 for a C Corporation?

a. when the taxpayer needs additional time to pay their currect tax liability

b. when the taxpayer need additional time to prepare an accurate tax return

c. when the taxpayer wants to make estimated tax payments to the IRS

d. when the taxpayer wants to create an installment plan with the IRS

Reference no: EM132001275

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