@Hal_Al wrote:
@AmeliesUncle
No citation. I'm going by the cost basis, in a gift, being the giver's basis; which I believe includes the giver's holding period, and depreciation previously taken by the giver.
Per Section 1223(2), the holding period of the donee would include the holding period of the donor provided the donee also takes the donor's adjusted basis per Section 1015(a). I would tend to think, in that case, everything else would follow, including the type of use, but I cannot seem to locate any authority for that proposition (i.e., that the type of use carries over with the gift).
On the other hand, Section 1223(2) would appear not to be applicable in the event the FMV was used as the donee's basis. In that instance, the donee's holding period would appear to begin as of the date of the gift.
