Farmerofstock: "I am about to receive a gift of $100,000. I have been asked if I want it in stock or cash. Are there any different tax consequences either way ?? I plan on taking some cash, to pay debt, and the rest in stock which I hopefully will reinvest dividends on,until much later when I will get the quarterly check. Any suggestions??"Yes. I say: "Show me the money."I am sure that the FAQ discusses gifts, but basically a gift of appreciated stock requires you to assume the donor (giver's) basis and you will owe capital gains on all appreciation (including that which accrued while the donor owned the stock), when you sell. If the stock has depreciated, then the rules become more complex (primarily to assure that losses are not gifted to high marginal rate taxpayers).IMHO, 100k cash in my hand is worth more to me than 100k of stock that has a basis of 50k.Regards, JAFO
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