Remember, all the rich people are rushing to pass on their inheritances to children/grandchildren before December 31. Under the current laws, the lifetime gift tax exemption limit is something like $11 million. anything above that limit has a 40% estate tax. Under Biden's tax proposal, that limit comes down to $3.75 million.
Under this scenario, you want to pass on the gifts with as low as a cost basis as possible. It sure sounds like that is what this is all about.
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