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.

Question

Quizplus · Accepted Answer

The holding period of property acquired by gift begins 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 short period of time before giving it as a gift, the donee's holding period will include the donor's holding period. If the donor held the property for a long period of time before giving it as a gift, the donee's holding period will begin on the date of gift.

The Holding Period of Property Acquired by Gift May Begin