The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/i-cut-this-from-the-irs-web-site-because-i-am-in-14474310.aspx

Subject:  Re: Gifting Stock Date:  3/4/2001  11:35 PM
Author:  kelliejo Number:  47670 of 120812

I cut this from the IRS web site because I am in the same situation. Not sure exactly what it means based on your situation, but it might help:

http://www.irs.ustreas.gov/prod/tax_edu/faq/faq-kw89.html
I received stock as a gift from my grandparents. I am selling the stock this year. How can I figure the basis of the gifted stock?
To figure the basis of property you receive as a gift, you must know its adjusted basis to the donor just before it was given to you, its fair market value (FMV) at the time it was given to you, and any gift tax paid on it.

If the FMV of the property was less than the donor's adjusted basis, your basis for gain on its sale or other disposition is the same as the donor's adjusted basis plus or minus any required adjustment to basis during the period you held the property. Your basis for loss on its sale or other disposition is its FMV at the time you received the gift plus or minus any required adjustment to basis during the period you held the property.

If the FMV of the property was equal to or greater than the donor's adjusted basis, your basis for gain or loss on its sale or other disposition is the same as the donor's adjusted basis at the time you received the gift. Increase your basis by all or part of the gift tax paid, depending on the date of the gift.

Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us