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Question 5 of 10.
What is the basis of gifted property used to calculate loss if the fair market value (FMV) of the property on the date of the gift is less than the donor's adjusted basis?
The donor's purchase price.
The FMV of the property on the date of the gift.
The donor's adjusted basis, including gift tax paid, on the date of the gift.
The donor's purchase price less the amount of any gift tax paid.
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Question 6 of 10.
What is the basis of property converted from personal-use to business-use?
Fair market value (FMV) is always used to calculate depreciation, and adjusted basis is used to calculate gain or loss.
Greater of adjusted basis or FMV on date of conversion.
Lesser of adjusted basis or FMV on date of conversion.
Purchase price.
Sagot :
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