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Discussion:Basic gift tax question

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Discussion Forum Index --> Tax Questions --> Basic gift tax question

Harry07 (talk|edits) said:

18 August 2008
Am I correct that a gift of real estate has a carry-over basis to the recipient of the donor's basis (plus any improvements less depreciation)? Thus, when the recipient sells the gifted property he will recognize his gain/loss.

But, when filing a gift tax return at the time the gift is made (gift is well-over $12K), I must use the FMV on the date of the gift rather than the donor's cost basis? Therefore, I must have the FMV calculated using an appraisal or real estate tax return for the value?

Sorry for such a basic question, but it has been a long day....

CATAXES (talk|edits) said:

18 August 2008
Yes, Harry, you are correct. Basis to recipient is donor's basis. Value of gift is FMV

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