Thursday, July 30, 2015

Gift Property Basis

General Rule: Use Rollover (original cost) Basis

Dependent on the Selling Price (SP) value:
  • SP > RO: basis is RO ("gain" basis)
  • SP < FV: basis is FV ("loss" basis)
  • RO < SP < FV: NO BASIS - NO G/L RECOGNIZED ("middle selling price")
RO: $4K
FV: $3K

SP: $3.5K --> NO G/L RECOGNIZED

No comments:

Post a Comment