Why is land acquired as a gift in 1976 considered a long term gain when sold?

[jeangould638]

I think Turbo Tax made a mistake - how can I correct it to make it long term?  Just discovered that if I entered a figure in the market value at time of gift box, it then treated as long term instead of short.

[view2 · Accepted solution]

Capital gains or losses on property received as a gift are calculated with respect to the original owner's cost basis in the property. In other words, when property is given, the recipient receives both the property and the property's cost basis. The recipient also receives the donor's holding period in the property for determining whether a gain is long-term or short term.