In 2017, José, a widower, sells land (fair market value of $100,000) to his daughter, Linda, for $50,000. José has not made a taxable gift.

Question

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The difference between the fair market value and the amount paid by the daughter ($50,000) is considered a gift. Therefore, José has made a taxable gift of $50,000. Depending on the gift tax laws and exemptions, he may need to file a gift tax return and pay gift tax on the amount of the gift.

In 2017, José, a Widower, Sells Land (Fair Market Value