Question

Tobin inherited 100 acres of land on the death of his father in 2019. A Federal estate tax return was filed and the land was valued at $300,000 (its fair market value at the date of the death). The father had originally acquired the land in 1976 for $19,000 and prior to his death had made permanent improvements of $6,000. What is Tobin's basis in the land? a.$300,000 b.$19,000 c.$25,000 d.$325,000

Answer 1

$300,000

Step-by-step explanation:

Based on the information given we were told that the land was valued at the amount of $300,000 which is the fair market value price as at when Tobis father died this means that the amount of $300,000 will be Tobin's basis in the land eventhough his father bought the land at the amount of $19,000 in the year 1970 but since we were told that the Federal estate tax return was been filed and the land was valued at the amount of $300,000 this means that $300,000 will be Tobis basis in the land.