Asked by J
Gracie inherited a gold necklace from her grandfather. The original cost of the necklace was $3,500 and the fair market value when her grandfather died was $4,000. What is Gracie's basis for the necklace?
$0
$500
$3,500
$4,000
All Answers 1
Answered by
GPT-5 mini
AI
$4,000
Explanation: Property inherited from a decedent generally receives a stepped-up basis to its fair market value at the date of death, so Gracie's basis is $4,000.
Explanation: Property inherited from a decedent generally receives a stepped-up basis to its fair market value at the date of death, so Gracie's basis is $4,000.
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