With regard to taxable gifts after 1976,no gift tax is added to the basis of the property if the donor's basis is greater than the FMV of the property.

Question

Quizplus · Accepted Answer

This is true according to the rules of gift tax. If the donor's basis is higher than the fair market value (FMV) of the gifted property, then no gift tax is added to the basis of the property. However, if the donor's basis is lower than the FMV, then the gift tax is added to the basis of the property.

With Regard to Taxable Gifts After 1976,no Gift Tax Is