That kind of seems like a trick question given how similar all of the answers are. I did all of the questions in the wiley test bank and dont ever remember seeing a question like that. I wouldnt sweat it.
I moved it to Saturday… Sunday morning i got at 8.00 but i am not a morning person. it takes time for my brain to come to senses which will be around 10.am 🙁 .
So the conclusion to that was >50% for tax shelter, and >40% for other positions (substantial authority?)?
@will, not sure where you are at in your studies but you seem prepared. it will probably be better to just get it done with tomorrow too, on top of the timing. I'm going at 930am tomorrow…I do best on an empty stomach with some caffeine in me. Good luck to everyone in here.
If the gift is property the donors basis is the adjusted basis.
If the gift is cash use the total cash gift value.
Apply the $14,000 gift exclusion to the basis of the gifts as shown above. You get an additional $14,000 exclusion that can be applied from your spouse if you are MFJ.
I realized that my understanding of mid quarter convention was wrong. It's not assumed that 100% of property was purchased in the middle of last quarter, just in the middle of any quarter
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