Suppose I determine to gift my son $10K, and do so by giving him six, one-ounce gold coins which he then retails for $1667 each.
However, suppose I had bought them x years ago for $2000 apiece.
With the $10K gift, would he also assume my basis of $12K – and thus upon selling the coins have the additional benefit of a $2K capital loss with which to offset any capital gains he might have realized elsewhere?
Or do I keep the $2K of the original $12K basis and thus the $2K loss?
You can’t gift a tax loss.
The basis for a gifted item is the lesser of the current value or the original cost.
Any tax loss evaporates. It can’t be claimed by either the giver or receiver.