Whenever the donor's adjusted basis is used to compute a gain or loss on the donee's disposition of property received by gift, the donee's holding period is always the period of time the property was owned by the donee only.

Question

Quizplus · Accepted Answer

When the donor's adjusted basis is used for determining gain or loss, the donee's holding period includes the time the property was held by the donor, effectively tacking the donor's holding period onto the donee's.

Whenever the Donor's Adjusted Basis Is Used to Compute a Gain