To figure the gain or loss from the sale of property received as a gift,the donee must know the donor's adjusted basis as well as the FMV at the date of the gift.

Question

Quizplus · Accepted Answer

This is true because the donee's gain or loss is calculated from the difference between the sale price and the donor's adjusted basis at the time of the gift. The FMV at the date of the gift is also important because it helps determine if the donor needs to pay any gift taxes.

To Figure the Gain or Loss from the Sale of Property