Chapter 11: The Taxation of Capital Assets

01.Core Concepts

Property received from a decedent • Deemed to have a long-term holding period • Death is long-term Gifts • FMV > basis on date of gift  Add holding period of donor and donee • FMV < basis on date of gift  Gain basis used on sale • Add holding period of donor and donee  Loss basis used on sale • Holding period starts on date of gift