@Anonymous_ wrote:
@Carl wrote:When gifting real estate, the value of the gift given is basically what the giver originally paid for it, plus the cost of any property improvements paid for by the giver.
That would be the basis of the gift in the hands of the donee, not the value of the gift.
That makes sense. I took a quick look at the Form 709, and it does ask for both values, the FMV appraised value (which I assume is the value of the gift that is subtracted from the giver's lifetime exclusion) and what the giver paid for it, plus improvements, i.e., cost basis to be passed on to the recipient. I wonder if/when the gift recipient ever sells the house, the IRS has the 709 reported cost basis in its database to compare when the sale is reported.
