On June 10,2015,Akira receives a gift of a rare marble statue with a fair market value of $9,000.The marble statue had an adjusted basis of $12,000 to the donor and was purchased in 2014.Akira sells the marble statue July 5,2016,for $8,000.When does Akira's holding period for the rare marble statue begin?

Question

Quizplus · Accepted Answer

Akira's holding period for the marble statue begins on June 10, 2015, the date he received the gift. When the property is received as a gift, the holding period starts on the date of acquisition by the donor, but only for the purpose of determining whether the gain or loss is long-term or short-term. Therefore, in this case, the holding period for purpose of determining long-term or short-term gain/loss is less than one year since Akira sold the statue on July 5, 2016.

On June 10,2015,Akira Receives a Gift of a Rare Marble