IMPACT OF GIFT TAX ON BASIS
01.Core Concepts
• Donee’s basis is increased by a portion of gift taxes paid by the donor if: • The fair market value (FMV) is greater than the donor’s basis on the date of the gift. *The “FMV of Property at Date of Gift” is the amount of the taxable gift, which includes a deduction for any gift tax annual exclusion taken for the gifted property.