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

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,

Erik
Print the post  

Announcements

Disclaimer:
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.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
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.
Advertisement