3. A receives a gift from B. Bs basis in the property was $200,000 and the fair market value of the property was $500,000 on the date of the gift. B held the property for 5 years and incurred $25,000 of gift tax due to the gift. A week after A receives the property, A sells the property. What are the tax results to A if A sells the property for $510,000? $450,000? 4. Same facts as above except B had a basis of $750,000 in the property. What are the results to A now?

5. Assume that B knew the tax rules applicable to gifts in question 4. Why wouldnt B sell the property, take a $200,000 loss and make a gift of cash to B of $500,000?