Cash and Checks
Cash gifts are the simplest to value — the gift amount is the face value of the cash or check. Cash gifts are reported on Form 709 Schedule A if they exceed the annual exclusion.
Real Estate
Gifting real estate requires a professional appraisal to determine fair market value. The gift amount is the appraised value minus any consideration received. Real estate gifts may also trigger property tax reassessment in some states (notably California under Proposition 19). The recipient takes the donor's basis (carryover basis), which can result in significant capital gains tax when the property is eventually sold.
Stocks and Securities
Publicly traded stocks are valued at the average of the high and low trading prices on the date of the gift. For mutual funds, use the net asset value (NAV) on the gift date. The recipient takes the donor's basis, so gifting appreciated stock means the recipient inherits the potential capital gains tax liability.
Business Interests
Gifting business interests (LLC membership interests, S-corp shares, partnership interests) requires a qualified business valuation. Valuation discounts for lack of marketability and lack of control may apply, potentially reducing the gift tax value. These gifts are among the most complex and almost always require professional assistance.