2.1 basis and holding of assets

Question 1

What is the basis of a gift receivee/donee

Answer 1

gifters basis unless FV is lower, then it is original basis for sell gains and donee basis for loss

Question 2

Stock split basis formula

Answer 2

(orginal price paid / new total share qty)* sell amt

Question 3

tax basis for loss on sale of converted business use property

Answer 3

lower of (1) the original basis or (2) FMV at conversion - any depreciation that year