Posted: August 13th, 2015

Wilbur owns a farm worth $100,000. He said to his nephew,

Wilbur owns a farm worth $100,000. He said to his nephew, “Peter, if you will take care of my farm for the rest of my life, you can have it when I die.” Wilbur’s will conveyed the farm to Peter. At the time of Wilbur’s death, the farm was worth $150,000. When Wilbur dies, Peter must include $150,000 in his gross income.