Multiple Choice
On July 3,2016,Cynthia receives a gift of a collection of books valued at $10,000.The books have an adjusted basis of $6,000 to the donor.They had been purchased in 2005.Several months after receiving the gift,Cynthia sells the books to a professional collector for $9,000.How is Cynthia's holding period for the books determined?
A) It depends on whether a gift tax was paid at the time of the gift.
B) It begins in 2005.
C) It begins in 2016.
D) It is irrelevant because the transfer was a gift. Gifts are always considered to be held long-term.
Correct Answer:
Verified
Correct Answer:
Verified
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