Is this true or false with respect to the basis of property? Why or why not?
In 2002, John acquires property with a FMV of $500,000. In 2003, John gifts the property to Jane when its FMV is $600,000. Jane's basis in the property is $600,000.© BrainMass Inc. brainmass.com June 4, 2020, 1:19 am ad1c9bdddf
Assuming that John's basis in the property is less than $600,000, this is false. IRC section 1015(a) states that "If the property was acquired by gift after December 31, ...
This solution cites authorities and discusses the determination of the donee's basis in property gifted to him or her.