it may not be short-term even though you personally held it for less than one year
The holding period for gifted property is determined by the donor's holding period. If the donor held the asset for over one year, the gain is considered long-term.
If you sell the gifted property for more than the original basis, your gain is the sale proceeds over the original basis. If you sell the property for less than the fair market value at the time of the gift, your taxable loss is the difference between the sale price and the gifted fair market value.
if you sell for a price between the tax basis and fair market value where FV was less than tax basis there is no gain or loss, but you still have to report it.
