What would her taxable gain be for income tax purposes

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Reference no: EM132022831

When Ronnie died seven months ago he left his prize art collection to his daughter Kate. Ronnie had a fantastic eye for selecting artwork by unknown painters, buying the painting cheap, and then selling them for a high profit once the painter was recognized by the general public. Three months before his death, Ronnie purchased an enchanting oil painting of a beautiful women that Ronnie claimed would be “as famous as the Mona Lisa” for $4,000. Kate has been exhibiting the painting since her father’s death and a local art collector offered her $100,000 for the painting. Kate is extremely excited because the painting was only valued at $15,000 when her father died. If Kate sold the painting today, what would her taxable gain be for income tax purposes.

Reference no: EM132022831

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