Which of the following is correct?
A) The gain basis for property received by gift is the lesser of the donor's adjusted basis or the fair market value on the date of the gift.
B) The loss basis for property received by gift is the same as the donor's basis.
C) The gain basis for inherited property is the same as the decedent's basis.
D) The loss basis for inherited property is the lesser of the decedent's basis or the fair market value on the date of the decedent's death.
E) None of the above.

Question

Quizplus · Accepted Answer

The gain basis for property received by gift is generally the donor's adjusted basis, not the lesser of the donor's adjusted basis or the fair market value. The loss basis for property received by gift is the lesser of the donor's adjusted basis or the fair market value at the time of the gift. For inherited property, both the gain and loss basis are typically the fair market value at the date of the decedent's death, not the decedent's basis.

Which of the Following Is Correct