Rita died on January 1, 2018 owning an asset with a FMV of $730,000 that she purchased in 2010 for $600,000. Bert inherited the asset from Rita. When Bert sells the asset for $800,000 on August 20, 2018, he must recognize a
A) STCG of $70,000.
B) LTCG of $70,000.
C) STCG of $200,000.
D) LTCG of $200,000.
B) LTCG of $70,000.
$800,000 - $730,000 (FMV basis upon inheritance) = $70,000. The holding period for inherited property is automatically long term.
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