Nonprofit's basis in property

Taxpayer received a house as a gift from a charitable organization.
Now he wants to sell the house. Does he have a carry-over basis from
the nonprofit, or does he start from zero?
I've looked around, but can't figure this one out. Any ideas?
Thanks.
Reply to
Stuart O. Bronstein
Page 9 IRS Pub 551 Basis of Assets. If FMV on date of gift is higher than the donor's cost basis, then the donor's cost basis transfers to the donee. If FMV on date of gift is less than the cost basis, then the basis to the donee depends upon whether the property is sold at a gain or a loss. To compute gain in this instance, use donor's basis. To compute a loss use FMV on the gift date. If you use the donor's basis to compute a gain but get a loss and then use FMV to compute a loss and get a gain, you have neither a gain or a loss on the sale.
Reply to
Alan
Thanks Alan. I wasn't certain whether gifts from a nonprofit would follow the same rules as other gifts, because sometimes basis is difficult to determine. But that answers the question.
Reply to
Stuart O. Bronstein

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