For income tax purposes the basis of property is generally its cost. § 1012. The donor’s basis in property generally carries over to the donee under § 1015. The basis of property acquired from a decedent is fixed by its federal estate tax value in the decedent’s estate. § 1014. As provided in § 1016, the basis of property is adjusted for post-acquisition expenditures, receipts, depreciation, losses, and other items.
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