Section 1015 basis of property received as a gift is the basis of the property in the hands of the donee is the same as the basis in the property in the hands of the donor. There is a deferral of the gain in with the appreciation attributable to the time it is in the hands of the donor.

T receives a gift from an uncles detached and disinterested generosity. Ts uncle has a basis in the property of $70,000 and the FMV of the property at the time of the gift is $100,000. T sells the property for $100,000. What is the gain?

Same T and same uncle, same motivation, but the uncles basis is $120,000 and the FMV at the time is $100,000. T sells the property for $130,000. What is the gain?