Capital gains and lifetime gifts

Dear Liza,
My dad has transferred $13,000 in stock for several years to me.  I would like to transfer some stock to my son who in turn would like to sell that stock to help purchase a house. Who will owe the capital gain taxes?  For example say the stock was worth $20 a share when transferred to me but when I transfer to my son it is worth $40 a share.  Gifts given during life (from your father to you; from you to your son) retains the donor’s basis: so, for capital gains purposes, the stock is still worth $20 a share when you give it to your son, because that’s what the basis in the stock was when your father gave it to you.  If you give it to your son, and he sells it, he will pay the capital gains on the sale.