Yes. You simply report the actual sales price (after the $28,000 "discount") on form 8949 and sch D. You are not allowed to show a loss on the sale.
Since the gift is less than the gift tax rule, you do not need to file a gift tax return. "Gift
Tax" is somewhat of a misnomer. Even though a gift tax return
may be required, very few people ever actually pay federal gift tax. So, you could make an even bigger gift of equity to avoid capital gains. But keep in mind that long term capital gains are taxed a lower rate than ordinary income and at 0% for many people.
The purpose
of the gift tax return is usually only to document a reduction in the allowable
estate tax exemption.
See https://turbotax.intuit.com/tax-tools/tax-tips/Tax-Planning-and-Checklists/The-Gift-Tax-Made-Simple/...
