On September 18,2011,Jerry received land and a building from Ted as a gift.Ted had purchased the land and building on March 5,2008,and his adjusted basis and the fair market value at the date of the gift were as follows:
Ted paid gift tax on the transfer to Jerry of $96,000.

Question

On September 18,2011,Jerry received land and a building from Ted as a gift.Ted had purchased the land and building on March 5,2008,and his adjusted basis and the fair market value at the date of the gift were as follows:
  Ted paid gift tax on the transfer to Jerry of $96,000.

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The Answer is

The basis is allocated to the land and building as follows:
Land: ($200,000/$300,000)´ $260,070 = $173,380
Building: ($100,000/$300,000)´ $260,070 = $86,690
Jerry's holding period begins on March 5,2008.
*The $287,000 is equal to the fair market value of the land and building of $300,000 reduced by the per donee annual exclusion of $13,000.
The basis is allocated to the land and building as follows: Land: ($200,000/$300,000)´ $260,070 = $173,380 Building: ($100,000/$300,000)´ $260,070 = $86,690 Jerry's holding period begins on March 5,2008. *The $287,000 is equal to the fair market value of the land and building of $300,000 reduced by the per donee annual exclusion of $13,000.

On September 18,2011,Jerry Received Land and a Building from Ted