David gave property with a basis of $1,330 to Hannah when the property had a FMV of $1,000 and paid gift taxes of $80.If Hannah later sells the property for $1,400,Hannah's basis (to determine gain)in the property immediately before the sale is

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Hannah's basis for determining gain is the donor's adjusted basis at the time of the gift, which is $1,330. The gift tax paid does not affect the basis for gain.

David Gave Property with a Basis of $1,330 to Hannah