Gift Tax Itemized?

[Edsel]

If a donor makes a taxable gift, can he deduct gift tax actually PAID?

Instructions say the amount actually paid goes into the basis of the gift itself. (I don't know how this works if the gift is cash, but won't argue the point).

Most gifts do not result in gift tax actually paid, but as a reduction in their estate exemption. However, some states DO impose a gift tax. If the state gift tax is paid, can that be considered an itemized deduction?

[Burke]

No, state gift tax is not an eligible itemized deduction.

[New York Enrolled Agent]

Instructions say the amount actually paid goes into the basis of the gift itself. (I don't know how this works if the gift is cash, but won't argue the point).

It's not as simple as adding the gift tax to the basis. The increase in basis will be on appreciated property only and is in a ratio = to the (appreciation divided by the FMV) times the gift tax paid. See §1015(d)