In June 2007,Becky makes a gift of securities (basis $412,000; fair market value $812,000)to her uncle,upon which a gift tax of $40,000 is paid.The uncle dies in July 2008,when the securities are worth $900,000.Under the terms of the uncle's will,the securities return to Becky.Becky's income tax basis in the securities is:

Question

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Since the uncle's death occurs more than one year after the gift,the one-year,anti-churning rule of § 1014(e)does not apply.

In June 2007,Becky Makes a Gift of Securities (Basis $412,000;