Believing that his death was imminent, a widower gave his daughter some real estate 2 years ago and filed a timely gift tax return. The widower died on January 1 of this year. Additional facts are these:
Widower's basis in the real estate
Value of real estate when gifted $1,710,000
Value of real estate on date of death
Amount of gift tax paid by widower
Assuming the widower made no additional gifts to his daughter,the daughter's income tax base is....
The daughter's income tax basis is not stepped up to the date-of-death value since she received it by gift before the transferor's death.