| Year | FMV | Amount of gift | Percentage of FMV transferred | Basis | Amount of basis transferred |
| 2010 | $185,000 | $26,000 | 14.0% | $185,000 | 14.0% |
| 2011 | ?? | $26,000 | ?? | ?? | ?? |
Also needs to be kept in mind that the following year in 2011 they then owned 86% of the condo BEFORE the 2011 gift (the parents' basis would be $159,000 at the end of 2010, not $185,000).
In 2011 they're down to an 86% interest in the property which is the max they could gift to the son and the son would get an incremental increase of any increase in the FMV because he now has a 14% ownership interest. At some point the son has 100% and the parents 0%.
