basis of property

[tcerny51]

Parent gifts a condo to a child, who's been living there for a number of years. Parent files a gift tax return for the value of the condo. Child sells the condo the same year, assuming no gain in value of condo. Is the child's basis in the condo the current value, so gain is $0 or does the child have to recognize mom's basis and pay tax based on that gain?

[Just-Lisa-Now-]

The kids basis is the parents basis when its given as a gift.

[PATAX]

Lisa is Right, plus any Capital Improvements, permanent fixtures, Etc paid by the child after he acquired it. Just my opinion