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:

European Union

A political and economic union of 27 European countries that have agreed to share a common market, a customs union, and a variety of legislative institutions.

Euro

The Eurozone's official monetary unit, adopted by 19 out of the 27 countries in the European Union.

International Monetary Fund (IMF)

An organization of over 150 nations set up as a lender of last resort, especially to nations that had otherwise been planning to devaluate their currency, or were in financial crisis.

World Bank

An international banking entity that delivers financial support in the form of loans and grants to less affluent countries, aiming to assist them in implementing capital projects.