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Hi, I'm a newbie here, so any help explaining the appropriate tax issues will be appreciated!

Last month, my mother transferred/gifted an Oppenheimer mutual find valued at approx. 12K to me. (She first bought these funds about 5 years ago - last contribution being about 3 years ago) What I want to do is invest that money in a better performing Vanguard Index fund. I am under the impression that the most expedient way to do that would be to liquidate the gifted fund, then start up a new fund with that money.

What I want to know is:
-Does it matter when I do this (having just received these mutual funds)?
-What kind of taxes will I have to pay if I liquidate this, and immediately re-invest?
-What's the deal with the whole "gift tax" and 10K limit? What will I have to pay come April 15 (whether I re-invest this money or not)?

If you could explain this in plain English I'd appreciate it! Thanks!
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