Federal Gift Tax

[Barbara432]

What is the name of your state (only U.S. law)? NC
My mother deeded her interest, in some real estate, to me, January, 2009. Rather than having to spend money for an appraisal, will the IRS, cause problems for my mother if she uses the value placed on the property, by the county, for the purpose of paying county property tax? She will not have to file a NC gift tax form, because NC gift tax was repealed January 1, 2009. I am sure the appraised value would be more than the county tax value, but her interest would not exceed the one time one million dollar gift.

 

[anteater]

Gift tax is based on her basis.

The value used is the fair market value.

Form 709:

The value of a gift is the fair market value of the property on the date the gift is made. The fair market value is the price at which the property would change hands between a willing buyer and a willing seller, when neither is forced to buy or to sell, and when both have reasonable knowledge of all relevant facts...

 

[FlyingRon]

Antie is right. Basis only has meaning to compute the (capital) gain.
The gift value is the FMV. You get the basis as part of the gift but it is meaningless until you go to sell it yourself.