What is doug basis for the building

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Question - Doug receives a duplex as a gift from his uncle. The uncle's basis for the duplex and land is $90,000. At the time of the gift, the land and building have FMVs of $40,000 and $80,000, respectively. No gift tax is paid by Doug's uncle at the time of the gift.

a. To determine gain, what is Doug's basis for the land? (Show your calculations)

b. To determine gain, what is Doug's basis for the building? (Show your calculations)

c. Will the basis of the land and building be the same as in Parts a. and b. for purposes of determining loss?

Reference no: EM131896077

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