what it's worth currently is not relevant.
here are the tax rules
To figure out what to use to figure gain/loss you must know three amounts:
1) The donor's adjusted basis just before the donor made the gift.
2) The fair market value (FMV) of the property at the time of the gift.
3) The amount of any gift tax paid on the gift (Form 709, United States Gift (and Generation-Skipping Transfer) Tax Return).
A) If the FMV at the time of the gift is less than the donor's adjusted basis, your adjusted basis depends on whether you have a gain or loss when you dispose of the property.
A1) Your basis for figuring a gain is the donor's adjusted basis, plus or minus any required adjustments to basis while you held the property.
A2) Your basis for figuring a loss is the FMV of the property at the date of the gift, plus or minus any required adjustments to basis while you held the property.
A3) If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the FMV for figuring a loss and get a gain, you have neither a gain nor loss.
B) If the FMV of the property at the time of the gift is equal to or greater than the donor's adjusted basis, your basis is the donor's adjusted basis just before the donor made the gift. to that you would add any required adjustments while you held the property
what if you don't know the donor's basis and FMV at the date of the gift? then your probably going to have to hire an appraiser to get the FMV at the date of the gift. what the appraiser may not be able to do is tell you the donor's basis if you have no documentation. then you'll need to consult with a tax pro.
