Which of the following is correct? The gain basis for property received by gift is the lesser of the donor’s adjusted basis or the fair market value on the date of the gift. The loss basis for property received by gift is the same as the donor’s basis. The gain basis for inherited property is the same as the decedent’s basis. The loss basis for inherited property is the lesser of the decedent’s basis or the fair market value on the date of the decedent’s death. None of the above.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter13: Property Transactions: Determination Of Gain Or Loss, Basis Considerations, And Nonta Xable Exchanges
Section: Chapter Questions
Problem 4BCRQ
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Which of the following is correct?

  1. The gain basis for property received by gift is the lesser of the donor’s adjusted basis or the fair market value on the date of the gift.
  2. The loss basis for property received by gift is the same as the donor’s basis.
  3. The gain basis for inherited property is the same as the decedent’s basis.
  4. The loss basis for inherited property is the lesser of the decedent’s basis or the fair market value on the date of the decedent’s death.
  5. None of the above.
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