How Is the Donee's Basis Calculated for the Gift of Appreciated

question 239

Essay

How is the donee's basis calculated for the gift of appreciated property for a gift made before 1977? Assume the donor pays gift tax.

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Definitions:

Diaphragm

A muscle that separates the chest cavity from the abdominal cavity, playing a major role in breathing.

Inhalation

The act of breathing in, which allows air or other substances to enter the lungs.

Upward

A direction or movement toward a higher position or place.

Bronchioles

The small airway passages in the lungs that extend from the bronchi and lead to the air sacs (alveoli).