A donee's income tax basis in property received as a gift includes any gift tax paid by the donor.

Name: A donee's income tax basis in property received as a gift includes any gift tax paid by the donor.
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Any gift tax would not be included that caused the basis to exceed the value of the property on the date of the gift.For post-1976 transfers,only the gift tax attributable to appreciation is allowed.

A Donee's Income Tax Basis in Property Received as a Gift