Gifted property

[gman]

Taxpayer gifts land and equipment to daughters. One piece of land is valued higher, so the daughter
pays the other sibling in cash to make things equal. What kind of reporting would be required for
either sibling?

[ATSMAN]

Why didn't the Taxpayer gift the valuation difference in cash to one daughter who got less?

The daughter who gifted cash to her sister may have to file a gift tax return depending on the amount.

[ChEAr$]

Some children are gifted.

Property is given.

And that distinction is a "given" to someone who learnt English the old fashioned way. (grin

[Burke]

The daughter who gifted cash to her sister may have to file a gift tax return depending on the amount.

Atsman is correct. The original donor could distribute any amounts to either daughter. There is no law saying they have to be equal. And he may have to file a gift tax return as well if required.

The problem may be in their determination of basis. Giving cash to her sister has no affect on basis for either party. They both still assume their father's original basis in the property as assigned to the divided interests.