if the fair market value of the gifted property on the date it was received is less than the donor's adjusted basis, then the basis used to calculate loss is the:

1. donor's adjusted basis plus or minus any required adjustment to the basis while the property was held.

2. donpr's purchase price.

3. fair market value when one receives the gift plus or minus any required adjustment to the basis while the property was held.

4. lower of the fair market value of the property or the donor's adjusted basis, including gift tax paid, on the date of the gift.