Suppose Annalise is given a gift by her father of income-producing property that has an adjusted basis of $100K on the date of the gift. The FMV of the property on that date is $90K. Annalise later sells the property for $95K. What is her gain or loss? Under what conditions might a taxpayer elect to first apply the reduction of tax attributes to the taxpayer’s depreciable property or to the basis of real property held primarily for sale to customers rather than the normal ordering rules of section 108(b)(2)?