Discussion Question 13-11 (LO. 3)

Robin inherits 1,000 shares of Wal-Mart stock from her aunt in 2017. According to the information received from the executor of her aunt's estate, Robin's adjusted basis for the stock is $55,000. Albert, Robin's fianc, receives 1,000 shares of Wal-Mart stock from his uncle as a gift in 2017. His uncle tells Albert that his adjusted basis for the Wal-Mart stock is $7,000.

What could cause the substantial difference in the adjusted basis for Robin's and Albert's respective 1,000 shares of Wal-Mart stock?

For inherited property, the basis for the heir is the . For property received by gift, the basis for the donee is the .