Corky receives a gift of property from her Aunt Cynthia. Cynthia purchased the property 17 years ago for $375,000. On the date of the gift, the property is appraised at $500,000. What is Corky's holding period for the property if she sells it one month after the gift was completed?

Question

Quizplus · Accepted Answer

Corky's holding period includes the time the property was held by Aunt Cynthia, because it was a gift and not inherited property. Since Cynthia held it for 17 years before gifting it, and Corky sells it one month after receiving it, the total holding period is over a year, making it long-term.

Corky Receives a Gift of Property from Her Aunt Cynthia