The holding period of property acquired by gift may begin on:
A) The date the property was acquired by the donor only.
B) The date of gift only.
C) Either the date the property was acquired by the donor or the date of gift.
D) The last day of the tax year in which the property was originally acquired by the donor.
E) None of the above.

Question

Quizplus · Accepted Answer

The holding period of property acquired by gift may begin on either the date the property was acquired by the donor or the date of gift, whichever is later. This means that if the donor held the property for a long time before gifting it, the recipient will be treated as if they have owned the property for that same length of time for tax purposes.

The Holding Period of Property Acquired by Gift May Begin