Question

In 2017, José, a widower, sells land (fair market value of $100,000) to his daughter, Linda, for $50,000. José has not made a taxable gift.

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Answer 1

José is a widower and is not subject to any gift tax as he meets the requirements for a marital exception.

Step-by-step explanation:

In this case, José sells land to his daughter Linda for $50,000, which is less than the fair market value of $100,000. Typically, when someone sells an item for less than its fair market value, it is considered a gift for tax purposes.

However, in this scenario, José is a widower and is not subject to any gift tax as he meets the requirements for a marital exception. The marital exception allows certain transfers of property between spouses to occur without incurring any gift tax.