Miguel gives Roberta land with an adjusted basis of $50,000 and an FMV of $40,000. No gift tax is paid. Roberta sells the land for $36,000. Roberta recognizes
A) no loss.
B) a $4,000 loss.
C) a $14,000 loss.
D) none of the above
B) a $4,000 loss.
Use lower of the donor's basis or the property's FMV on the gift date in computing the loss.
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