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Unformatted text preview: of disposition and the donor's basis is a loss, than the donee's basis for purposes of calculating the amount of loss realized is the lower of donor basis or the fair market value on the date of the gift. Note that the result is to produce the smallest loss possible in every situation. c. No gain or loss is realized. If the amount of the sales proceeds is between the basis for loss and the basis for gain, no gain or loss is realized. d. Realized gain of $1,000. Donor basis is applicable because the amount received on disposition exceeds donor basis....
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This note was uploaded on 08/25/2010 for the course AEM 4220 at Cornell University (Engineering School).