What is clara gain on the sale

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Reference no: EM131895840

Question - Using the following independent situations, answer the following questions:

Situation 1 - Clara received from her Aunt Sona, property with a FMV at the date of the gift of $51,400. Aunt Sona purchased the property five years ago for $44,300. Clara sold the property for $53,500. Assume Aunt Sona does not have MAGI of over $200,000.

1. What is the basis to Clara?

2. What is Clara's gain on the sale?

3. If Clara is in the 33% tax bracket, what is the tax on the gain (assuming she has no other gains/losses to be netted)?

Reference no: EM131895840

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