Property: Basis, Capital Gains, Section 121, and Like-Kind Exchange

Free IRS Enrolled Agent SEE Part 1 (Individuals) lesson in Income and Assets. 23 min read, ~3,395 words.

Basis: cost for purchases; carryover basis for gifts (dual basis if FMV < donor basis at gift); stepped-up FMV at death for inherited property, automatically long-term. Holding period: more than one year is long-term (0/15/20%); one year or less is short-term (ordinary rates); net short against short, long against long...