In 2007 Gregory L. Grantee received a 50% interest in small ranch property (100 acres) from his grandfather by gift. The grandfather had purchased the property in 1945 just after the war for $14,500. Grandfather wanted Gregory to have the 50% interest in case the government tried to take all of it at the time of his (grandfather's) death. Grandfather died in 2010 when the property was worth $450,000. Gregory did not inherit grandfather's half, but sold his interest in the property in 2012 for $550,000, What was Gregory's basis in the property?