Problem: If the fair market value (FMV) of a gift on the date it's given is less than the donor's adjusted basis, what is the basis used to calculate a gain on the sale of the gifted property?
- The donor's adjusted basis on the date of the gift.
- The donor's purchase price.
- The lower of the donor's adjusted basis or the FMV on the date of the gift.
- The FMV of the property on the date of the original purchase.