Identify which of the following statements is true.

Question

Quizplus · Accepted Answer

According to the IRS, if the gifted property's FMV on the date of the gift exceeds its adjusted basis and the donor pays no gift tax, the donee's basis is usually the same as the donor's basis, but if the donee sells the property for a loss, the loss deduction is limited to the lesser of the donor's basis or the FMV on the date of the gift. Option B is false because it is recommended that donors dispose of property that has declined in value by selling it, rather than gifting it. Option C is also false because the $13,000 annual exclusion only applies to gift tax purposes, not estate tax purposes.

Identify Which of the Following Statements Is True