What is the basis of gifted property to calculate loss if the FMV of the property on the date of the gift is less than the donor's adjusted basis?

1. The FMV of the property on the date of the gift.

2. The higher of FMV of the property or the donor's adjusted basis, including gift tax paid, on the date of the gift.

3. The lower of FMV of the property or the donor's adjusted basis, including gift tax paid, on the date of the gift.

4. The donor's purchase price.