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I think the answer to the following is implied in the FAQ, but it isn't quite explicit, so I want to make sure I understand it correctly.

I received a gift of stock. I know that my cost basis and holding period are those of the giver. (Its FMV was higher than the cost basis.) My understanding is that I now proceed just like I would with any other gain: the holding period is well over a year, so the income is a long-term capital gain, not income. In other words, it should be taxed through schedule D at the long-term CG rate (20% for me), NOT reported on the 1040 and taxed at my (higher) marginal tax rate. Is that correct?

Thanks so much,

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