I am sorry. I never saw this till yesterday and it was marked closed. At least I do not remember seeing it. I will send this reply, then an accept for your answer. If you can comment on the following questions, I will accept and send a bonus for each. Q1: If the man who gave the gift, call him Mr. Jones, purchased the property in 1940 for $15,000 then gave it to his grandson in 1960 when it had gone up in value to $70,000, which value would have been used to calculate the 1960 gift tax
...$15,000 or $70,000?
If the grandson sold it in 1970 for example, I expect it would have a basis of $15,000 for capital gains
, but would it have that value to determine the gift tax for 1960 or would the gift tax be based on its $70,000 value? ....I realize that the older man, Mr. Jones, would have had a $30,000 lifetime gift exclusion back in 1960. Q2: If he died in 2001, after the unified code, that may be irrelevant. Would that 30K exclusion be replaced by the unified credit? ....Q3: Also if the grandson only has a deed, how can he verify that any gift tax due was paid? Would his grandfather's lawyer who drew up the deed keep such documents, or the older man's accountant? Would the grandfather have gotten a receipt of any type to keep?