If I am not wrong recipient's cost basis is adjusted cost basis of donor on the date of receiving such property.
But how does donor calculates this adjusted cost basis particularly when house was purchased 10 years ago by said donor and he made various improvements by himself and paid cash for help most of the times.
Now the fair market value is almost 4 times than he originally purchased. But unless donor can give a detailed proof of improvements ..recipient's cost basis will always be donor' original purchase price 10 years ago??
