The basis of non-like-kind property received is the fair market value of that property at the time of the exchange.
The basis of non-like-kind property received in an exchange is primarily determined by the fair market value of the property received. This is in accordance with tax laws pertaining to exchanges where the equal nature of the trade is not maintained, often seen in scenarios involving like-kind exchanges under Section 1031 of the Internal Revenue Code.
When you receive property that is not of a like-kind in an exchange for other property, the IRS requires that the basis of the received property be the same as its fair market value at the time of the exchange. Consequently, this rules out the other options such as the basis in the hands of the transferor at the date of the exchange (which may reflect a different value), the adjusted basis of the property given up (since that pertains to the property that was relinquished), or the original cost of the property received (as this may not reflect current value).