The general rule to determine the basis of property acquired by gift is that the donee's basis is equal to the donor's basis plus any gift taxes paid.

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The general rule is that the donee's basis is the donor's basis at the time of the gift, not including any gift taxes paid. Gift taxes may affect the basis only in certain circumstances, such as when the fair market value is less than the donor's basis.

The General Rule to Determine the Basis of Property Acquired