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Is there any situation where it is advisable to gift stock with a FMV less than the donor's basis? It seems that it erases the possibility for the donor and the recipient to get the tax advantage of a loss. Shouldn't either the donor or the recipient be allowed to take a loss?

From 'Gifts of Stock' FAQ:
1. If the FMV of the stock is LESS than the donor's basis at the time of the gift:
A) Your basis for gain is the same as the donor's adjusted basis.
B) Your basis for loss is the FMV at the time of the gift.
C) If you use the donor's basis to compute a gain and get a loss, and then use the FMV to compute the loss and get a gain, here is neither a gain NOR loss.
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