Property that the recipient does not intend to sell should also be used for gifting. This is an important distinction from transfers of property at death or upon a sale where the recipient receives a stepped-up basis equal to the market value of the property at the time of the transfer. The higher the basis, the lower the taxable gain that will be realized upon the sale of the property. Finally, consider gifting property that is generating a high income to shift the income tax burden to the recipient. There are also properties that shouldn't be given away.
Timing is the final important consideration in developing a gifting strategy.
If you anticipate making a gift, then try to time the gift so that it is made during a dip or low point in the market. Even deathbed gifts are allowed and should be considered to reduce federal estate taxes. There is much more to gifting than handing your child or grandchild a check. Let's see how the rules work for a specific question from one of our members. Peruse past editions .