Problem:
In the current year, Andrew received a gift of property from his uncle. At the time of the gift, the property had a FMV of $114,000 and an adjusted basis to his uncle of $70,000. After deducting the annual exclusion, the amount of the gift was $100,000. Andrew's uncle paid a gift tax on the property of $24,000.
Required:
Question: What is the amount of Andrew's basis in the property?
- $70,000
- $80,560
- $94,000
- $114,000
Note: Please provide through step by step calculations.