Investors & landlords

Also, read Section 267(d)(1).

 

https://www.law.cornell.edu/uscode/text/26/267

 

As a side note, I'm thoroughly confused as to why anyone would think that a donor (Peter) would have "basis" after a completed gift. The property at that point is gone, nothing is left; the donee (transferee) would then have basis in the property that was gifted.