@MCD9861 , note that a gift has (a) basis same as that of the donor and (b) if below the yearly free amount does not require any reporting.
The best /sure way to avoid capital gains tax on a "gift" is not gift to the recipient but pass the item as inheritance i.e. use the basis "step-up" at the passing of the donor. Keep the item ( ear marked for the recipient ) as marital/ family asset as inheritance for the recipients.
Does this answer your query ? Or have I mir-interpreted your question ?
