What is stan realized gain on the sale

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During the current year, Stan sells a tract of land for $800,000. The property was received as a gift from Maxine on March 10, 1995, when the property had a $310,000 FMV. The taxable gift was $300,000 because the annual exclusion was $10,000 in 1995. Maxine purchased the property on April 12, 1980, for $110,000. At the time of the gift, Maxine paid a gift tax of $12,000. In order to sell the property, Stan paid a sales commission of $16,000.

a. What is Stan's realized gain on the sale. (Show all calculations)

b. How would your answer to Part a. change, if at all, if the FMV of the gift property was $85,000 as of the date of the gift. 

Reference no: EM13137709

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