Donor makes a gift to the donee. Which of the following is true with respect to the basis of the property?

Question 10 options:

The donor’s basis is always carried over to the donee.

The donor’s basis is always carried over if the property is transferred at a loss

The donee acquires the donor’s basis as long as the property is transferred at a gain

The donee’s basis is equal to the FMV of the property on the date of the transfer

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