On July 3,2013,Cynthia Receives a Gift of a Collection of Books

question 51

Multiple Choice

On July 3,2013,Cynthia receives a gift of a collection of books valued at $10,000.The books have an adjusted basis of $6,000 to the donor.They had been purchased in 2001.Several months after receiving the gift,Cynthia sells the books to a professional collector for $9,000.How is Cynthia's holding period for the books determined?

• A)It depends on whether a gift tax was paid at the time of the gift.
• B)It begins in 2001.
• C)It begins in 2013.
• D)It is irrelevant because the transfer was a gift. Gifts are always considered to be held long-term.

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Definitions:

Mississippian Societies

Indigenous cultures and peoples in North America known for their complex societies, mound-building practices, and thriving agricultural communities prior to European contact.

Afterlife

The belief in a life or existence that follows death, varying significantly across different religions and philosophical beliefs.

Spanish Conquering

Refers to the period of expansion and colonization by Spain, notably in the Americas, which led to significant cultural and demographic changes.