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Investors & landlords
After the transaction, you have basis in the property that was transferred, not just the value of the "gift" itself.
So, if you paid Peter $125,000 at a time when Peter's basis was $151,256 and the FMV of Peter's share was $175,000, then you would essentially take Peter's basis ($151.256) for his share, per Section 1.1015-4.
July 29, 2023
4:03 PM