As to property received as a gift, a donee's income tax basis for gain or loss may not be the same.

Question

Quizplus · Accepted Answer

The donee's basis for determining gain is generally the same as the donor's adjusted basis at the time of the gift. However, for determining loss, the basis is the lower of the donor's adjusted basis or the fair market value of the property at the time of the gift, which can result in different bases for gain and loss calculations.

As to Property Received as a Gift, a Donee's Income