Faith Inherits an Undivided Interest in a Parcel of Land

Essay

Faith inherits an undivided interest in a parcel of land from her father on February 15, 2019. Her father purchased
the land on August 25, 1992 and his basis for the land was $325,000. The fair market value of the land is $12,500,000 on the date of her father's death and is $11,000,000 six months later. The executor elects the alternate valuation
date. Faith has nine brothers and sisters and each inherited a one-tenth interest.
a. What is Faith's adjusted basis for her one-tenth undivided interest in the land?
b. What is her holding period for the land?