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What is the basis of artistic works that have been gifted to another by the creator? Artistic works are not capital assets for the creator

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What is the basis of artistic works that have been gifted to another by the creator? Artistic works are not capital assets for the creator or the recipient of the artistic works if given as a gift. Artistic works are not capital assets for the creator but are capital assets in the hands of the recipient if the creator gave the artistic works as a gift. Artistic works are capital assets to the creator if they are sold to an unrelated person. Artistic works are capital assets if they were available for sale in an art gallery. Lourdes, a sole proprietor, collected $8, 650 on November 21, 2013 on some of her outstanding receivables. Her basis in these receivables was $0. What is the gain or loss Lourdes recognizes for 2013? No gain or loss as the payments are within the normal course of business A short-term gain as the payments are from receivables that are always considered short-term A short-term loss as the FMV is greater than the payments received on the receivables An ordinary gain because the receivables had a FMV greater than the basis of the receivables

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