Lauren and Rob are getting divorced. As part of the divorce settlement, Lauren receives a vacation home worth $1,000,000. The couple purchased the vacation home 12 years ago for $250,000. Which of the following statements is true?

If Lauren sells the vacation home six months after receiving it in the divorce settlement, any gain or loss that she has will be short-term.

If Lauren sells the vacation home for $800,000, she will have a $200,000 loss.

In any future sale of the vacation home, Lauren and Rob will each have a basis of $125,000.

If Lauren sells the vacation home for $1,100,000, she will have a gain of $850,000.