@hcjontax wrote:
One reason for someone with below $11mm limit to file a 709, is to show a higher cost basis for a property that was gifted, so that when it is sold, the capital gains tax is lower for the person they gifted it to.
You have that backwards and it has nothing whatsoever to do with a 709 (a 709 only applies to the giver of a gift - never to the receiver). A gifted property does *not* have a higher cost basis. A gift retains the cost basis of the giver. Property that are sold have the cost basis of the buyer. (Which goes back to my prior comments).
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
