This deserves further clarification.
If one inherits property through an estate, they receive a stepped up cost basis on the property. In other words, the basis for the new owner is the value of the property on the date of the decedent’s death. If the new owner subsequently sells the property, capital gains tax would be due on the net proceeds received above the stepped up cost basis amount.
Conversely, if one receives a gift of property while the donor is alive, the new owner takes the donor’s cost basis. In that case, if the new owner subsequently sells the property, capital gains tax would be due on the net proceeds received above the donor’s cost basis.
The issue of a gift tax is an entirely different topic from capital gains tax. It is correct that there is a $14,000 annual person-to-person exclusion before gift taxes come into play (to an unlimited number of people). However, each individual donor has approximately $5.45 million in lifetime gifting BEYOND the annual exclusion that can be used up before any gift tax is due via the donor.
It seems that it would be difficult to argue a “gifting”, especially from a dead relative (as long as the coin date is before RIP).