Joseph makes a gift of securities (basis of $900,000; fair market value of $600,000) to his son, Earl. As a result of the transfer, Joseph paid a gift tax of $90,000. What is Earl's income tax basis in the securities if the gift occurred in 2011?

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The Answer of Joseph makes a gift of securities (basis of $900,000; fair market value of $600,000) to his son, Earl. As a result of the transfer, Joseph paid a gift tax of $90,000. What is Earl's income tax basis in the securities if the gift occurred in 2011?

Joseph Makes a Gift of Securities (Basis of $900,000; Fair