dclabounty on Nostr: Since it is a gift, their basis would be equal to your basis if the value at the time ...

Since it is a gift, their basis would be equal to your basis if the value at the time of transfer is equal to or greater than your basis.

If the value at the time of transfer is less than your basis they will have a dual basis for tax purposes. If they sell it for a gain, the basis is whatever your basis was. If they sell it for a loss, the basis is the value on the date of transfer.