still not so sure. say i have stock FMV $500 and basis of $500 that I sell to my brother for $100. if I'm correct IRC 1015 says his basis is $500. under IRC 267 i have a non-deductible loss on sale of $400. If it later appreciated to $900 and was sold, then under IRC 267 he could use that $400 loss to offset the gain? this is opposed to making a total gift of the stock. so his basis is $500 and if he sells for $900 a taxable gain of $400.
