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Question $1$ of $30.$

Which statement best describes how you determine the basis of purchased property?

The adjusted basis of the property in the hands of the seller.

The lower of the fair market value $($FMV$)$ or the adjusted basis for the seller.

The purchase price of the property plus certain costs incurred at the time of purchase.

The fair market value $($FMV$)$ of similar property.

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Question $2$ of $30.$

Given the situations below, which item still has the same basis as when it was originally purchased?

Bob sold his rental property after claiming depreciation.

Ebenezer's father gifted him a car that cost him $$25,000.$ The FMV on the date of the gift was $$15,000.$ Ebenezer sold the car at a loss.

Liz Marley owned $50$ shares of stock in a company. That company paid a cash dividend of $$2\mathrm{.}24$ per share in $2022.$

A coin is now worth double what Tim paid for it$.$

Bob's rental property.

Ebenezer's car.

Liz's stock shares.

Tim's coin.

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Question $3$ of $30.$

What information do you need to compute basis for gain or loss of property received as a gift?

The amount the donor paid for the item.

The adjusted basis on the alternate valuation date.

The donor's adjusted basis, including gift tax paid, and the fair market value $($FMV$)$ on the date of the gift.

You do not need any information, since gifts are not taxable to the recipient.

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Question $4$ of $30.$

Victoria purchased her primary residence for $$230,000.$ As part of the closing procedure, she paid:

$$2,300$ loan origination fee.

$$750$ to a lawyer to review the purchase contract and other closing papers.

$$150$ for a property survey.

$$800$ for title insurance.

She also gave the real estate agent a $$75$ gift basket in appreciation for his hard work.

What is Victoria's basis in the residence?

$$230,950$

$$231,700$

$$234,000$

$$234,075$

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Question $5$ of $30.$

Generally, what is the basis of property inherited from a decedent?

The purchase price of the property.

The fair market value $($FMV$)$ of the property on the date of death or the alternate valuation date.

The higher of the decedent's adjusted basis or the fair market value $($FMV$)$ on the date of death or the alternative valuation date.

The adjusted basis of the property on the decedent's date of death or the alternative valuation date.

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