The amount of the loss basis of a gift will differ from the amount of the gain basis only if at the date of the gift the adjusted basis of the property exceeds the property's fair market value.

Question

Quizplus · Accepted Answer

If the adjusted basis of the property is higher than its fair market value at the time of the gift, the loss basis will be the fair market value, while the gain basis will be the adjusted basis.

The Amount of the Loss Basis of a Gift Will