In general when gifting a property, donee (your child) recevies the cost basis of the donor.
The only time the donee doesn't pay capital gain tax is the one time when they inherit from your estate after your death. This is called step-up basis.
You need to sharpen up your googling skills. All these answers are readily available if you do a simple search. e.g."capital gain tax stock gift". In this information age there is no reason not to do a search before you ask other people. What you did was going down the wrong path and designed a very flawed scheme on false assumptions, and then I'd have to unwind your flawed scheme and false assumptions. Next time when you think of an idea, verify the basic premise before you build a house of cards.
