Question

In year 1, iris king bought a diamond necklace for her own use at a cost of $10,000. in year 6, when the fair market value was $12,000, iris gave this necklace to her daughter, ruth. no gift tax was due. ruth's holding period for this gift

Answer 1

The answer is: starts in year 1

Step-by-step explanation:

Holding period refers to the time an investor holds an investment, in other words, the time between the buying of the investment and the selling of the investment.

In Ruth's case, the holding period for this asset should be the time since her mother bought the diamond necklace.