Message Font: Serif | Sans-Serif
No. of Recommendations: 2

<2. Are there any tax implications to transferring this stock to them?
3. What is their cost basis for the stock?>

When your basis in the stock is higher than the current FMV and you give away your shares nobody ever gets to deduct that loss. Their basis for gain is what you paid for the stock, their basis for loss is the FMV at the time of the gift. If they sell it for a price between
your basis and the lower date of gift FMV there is no loss or gain to report.

Why don't you sell the stock and share with them the tax savings you get for taking the loss on your return?

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.