Question

teresa purchased necklce for 100 in 1966 in 2016 she gave to her granddaughter. at the time the necklace was appraised for 850 granddaughter sold necklace for 1200 what is the amount and character of the gain from sale

Answer 1

This is a long term property held gain. Here, the transferee (Teresa's granddaughter) carries the giver's basis of 100 (in 1966) and she sold it for 1200, so long term gain is 1100.