Hazel died on February 22, Year 7 with a gross estate of \($5.6\) million. In her will, she left her vacation home in Florida to her daughter and her vacation home in South Carolina to her son. Hazel had purchased the Florida home for \($250,000\) and the South Carolina home for \($365,000.\) Fair market values for the homes were as follows:

The executor of the estate properly elected the alternate valuation date. The Florida home was distributed on July 29 and the South Carolina home was distributed on October 31.

What are the daughter and son’s basis in the homes, respectively? What is the holding period for the daughter and son?

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$400,000 February 22, Year 7 Florida home South Carolina home $500,000 July 29, Year 7 $420,000 $510,000 August 22, Year 7 $425,000 $515,000 October 31, Year 7 $430,000 $530,000 February 22, Year 8 $450,000 $550,000