The split basis rule for determining the basis of gifts allows for one basis for determining losses and another for calculation of gains.

Question

Quizplus · Accepted Answer

The split basis rule allows for different bases to be used for determining losses and gains for a gifted asset. This is done by using the donor's basis for calculating losses and the fair market value at the time of the gift for calculating gains.

The Split Basis Rule for Determining the Basis of Gifts