Hi All ! Hoping to get some clarity 
When gifting securities I understand that the cost basis is not stepped up. However, if the recipient sells the securities, does the tax on that capital gain go back to the gifter to pay?
Separately does the 18k limit kick in at this point?
Hi, good question. There are two separate parts:
The recipient will generally use the original cost basis, and will pay tax on any capital gains.
The gifter will generally also use the original cost basis to report the transaction on Form 709, if they exceed the annual exemption, which is $18k for 2024. However, they will likely not need to pay taxes unless they have also exceeded the lifetime exemption, which is $13.61 million for 2024.
That’s all you need for test purposes, though, as with many of these topics, it’s more complicated than that in reality. You’d need to carefully read IRS Publication 551 and IRS Publication 550 for the specifics.
Awesome ! Really appreciate the feedback 