[Anonymous]

For property acquired by gift, does the donee’s holding period begin on the date they receive the gift or on the date the donor acquired the property? I can’t find this anywhere in the Wiley book! Thanks!

[KellyCA75]

For gifted property, the general rule is that the holding period is a rollover of the Donors holding period. However, I think it all depends on if the FMV at the date of gift is LESS than the Basis. If it is, then it depends on how much the Donee sells the gift for in the future. If the Donee sells the gift for greater than the FMV at the date of gift, then the holding period rolls over. If the Donee sells the gift for LOWER than FMV at the date of gift, then the holding period starts at the date of the gift. I hope that helps and if I'm wrong someone please correct me!

Edited it to be more clear!

BEC: Oct 2012
AUD: 86
REG: 86
FAR: 65 Rematch Jan 2013

[Anonymous]

Lol – I should have known it wouldn't be just a simple answer! I have no idea how I'm going to remember all these rules. Thank you so much for your wonderful explanation! I have printed this and put it with my notes 🙂

[Isaac]

apbandj – How is your REG studying coming along? I am taking REG on 8/30. I think you and I have discussed study strategies before. Best of luck to you on the exam. The tax portion of REG wasn't so bad. I on Business Law now. It's proving to be slightly more difficult for me. Kind-of like Audit. How are you preparing for BLaw?

FAR...80...Yaeger...Nov/2011
AUD...Exam...Oct/2012
REG
BEC

[Author]

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