Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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
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.
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.