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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121572  
Subject: Re: Gift of Stocks Date: 7/13/1999 8:04 PM
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[[I was gifted stocks valued at $10,000 in 1992. I sold them in 1999. For
purposes of figuring capital gains, do I use the donor's basis when he bought the
stock back in 1941, or is the basis different because of the market value of the
stock just before it was gifted in 1992.]]

As UU pointed out, you are stuck with the donor's basis (the basis of the person who gave you the shares). So MAKE SURE that person provided you with the PROOF of the basis (such as purchase confirmations back from 1941).

You can read more about this and other gift/basis issue in the Taxes FAQ area. You might want to check it out.

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Roy

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