@sandy4042 wrote:
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.
Doubtful there would be any matching for a sale of the property by the donee.
However, they retain those forms (709) just about forever so they absolutely would pull it out after the donor (who filed the 709) passes away and is required to file a 706. That latter requirement leaves out a ton of taxpayers, but that is the rationale behind reporting gifts exceeding the annual exclusion (as well as to collect gift tax for extremely large gifts).
