I am confused here...
It says donee receives cost basis of donor.
It also says donee receives donor's holding period in the property for determining whether a gain is long-term or short-term.
So why does donee need to live in that gifted property as his/her primary house for at least two of the last five years before selling it to be eligible for a capital gains exclusion of up to $250,000
If donee is receiving donor's holding period and donor is eligible for 250000$ exemption (by living in that property for last 2 years)- why can't donee automatically get that exemption? @rjs @fanfare @xmasbaby0 @Opus 17
