If the fair market value (FMV) of the gifted property on the date it was receive
ID: 1147946 • Letter: I
Question
If the fair market value (FMV) of the gifted property on the date it was received is less than the donor's adjusted basis, then the basis used to calculate loss is the _______. If the fair market value (FMV) of the gifted property on the date it was received is less than the donor's adjusted basis, then the basis used to calculate loss is the _______. If the fair market value (FMV) of the gifted property on the date it was received is less than the donor's adjusted basis, then the basis used to calculate loss is the _______.Explanation / Answer
If the FMV of the gifted property on the date it was received is less than the donor's adjusted basis , then the basis is used to calculate loss is the FMV of the property when you received the gift , plus or minus any required adjustments to basis while you held the property.
To calculate the gain is the same as the adjusted basis of donor, plus or minus any required adjustments to basis while you held the property.