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In 2011, José, a widower, sells land (fair market value of $100,000) to his daughter, Linda, for $50,000. José has made a taxable gift of $37,000.

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User MgNobody
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Final answer:

José has made a taxable gift of $37,000 by selling land to his daughter at a lower price.

Step-by-step explanation:

The subject of this question falls under Business and is relevant for College level students.

In the given scenario, José, a widower, sells land to his daughter Linda at a price lower than its fair market value. This difference between the fair market value and the sale price is considered a gift.

Therefore, José has made a taxable gift of $37,000 ($100,000 fair market value - $50,000 sale price).

It's important to note that the estate tax may be applicable on gifted amounts exceeding certain thresholds. It is always advisable to consult a tax professional or refer to the latest tax laws and regulations for precise information.

User Zergylord
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