Shontelle received a gift of income$-$producing property with an adjusted basis of $$49,000$ to the donor and fair market value of $$35,000$ on the date of gift. No gift tax was paid by the donor. Shontelle subsequently sold the property for $$41,000.$ What is the recognized gain or loss? What is the recognized gain or loss if the taxpayer later sells the property for $$30,000?$ $$55,000?$ What is Shontelle$$s holding period in the asset under each of these scenarios? Under which of these scenarios would you suggest that the donor not gift the property to Shontelle?

What if Shontelle passed away when the asset had an adjusted basis of $$49,000($to her$)$ and a FMV of $$55,000.$ What would the basis of the property be to Shontelle$$s heir? If Shontelle$$s heir sold the property six months after she died for $$57,000,$ what would be the heir$$s holding period and recognized gain $($or loss$)?$ Is it generally better to leave appreciated or depreciated property to your heirs? Why?