David gave property with a basis of $133,000 to Hannah when the property had a FMV of $100,000 and paid gift taxes of $8,000.If Hannah later sells the property for $140,000,Hannah's basis (to determine gain)in the property immediately before the sale is
A)$100,000.
B)$108,000.
C)$133,000.
D)$141,000.

Question

Quizplus · Accepted Answer

Hannah's basis in the property is the same as David's basis at the time of the gift, which is $133,000, because the FMV at the time of the gift was less than the donor's basis and no loss is recognized.

David Gave Property with a Basis of $133,000 to Hannah