Chapter 10: Basis Rules, Depreciation, and Asset Categorization

01.Core Concepts

Related Party • Spouse, ancestors & descendants, brothers and sisters (of the whole or half blood) Sales • If a gain results, normal rules apply • If loss results, double basis rule applies • Holding period resets Gifts • Gain property – carryover basis • Loss property – double basis rule applies • Holding period resets only if loss basis is used