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Unformatted text preview: If the FMV of the property at the date of gift is < donor basis a split basis rule applies Inherited basis FMB at DOD (date of death) or Alternative Valuation Date All inherited property is considered long-term Personal use converted to business use Use lower of basis or FMV at conversion Split basis rule applies when FMV at conversion is less than basis at conversion Basis in securities Stock dividends Non-taxable divide basis across all shares Taxable FMV of new shares = basis of new shares (and taxable income) Wash Sales 30 days before or after sale Add unrecovered basis to new investment...
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- Fall '08