Per the lectures/detail I've covered, yes it would be gift basis…won't dig into it too much to avoid confusion LOL. Occam's razor, (keep it simple stupid)
Here's an example from the publication just in case in helps
Example. You received an acre of land as
a gift. At the time of the gift, the land had an
FMV of $8,000. The donor's adjusted basis was
$10,000. After you received the land, no events
occurred to increase or decrease your basis. If
you sell the land for $12,000, you will have a
$2,000 gain because you must use the donor's
adjusted basis ($10,000) at the time of the gift
as your basis to figure gain. If you sell the land
for $7,000, you will have a $1,000 loss because
you must use the FMV ($8,000) at the time of
the gift as your basis to figure a loss.
If the sales price is between $8,000 and
$10,000, you have neither gain nor loss. For instance,
if the sales price was $9,000 and you
tried to figure a gain using the donor's adjusted
basis ($10,000), you would get a $1,000 loss. If
you then tried to figure a loss using the FMV
($8,000), you would get a $1,000 gain.
.