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On 20 August 1999 I transferred stock that I inherited in 1977 to my 20 year old daughter who is in the 15% bracket. The stock was sold on 16 June 2000.
Does the holding period run from 1977 or from 1999?

The holding period begins in 1977. If the stock was worth more on 20 Aug 1999 than when you inherited it, your daughter keeps the date of death basis. If the stock was worth less on 20 Aug 1999 than at date of death, then your daughter uses the date of death value to calculate a gain, or the 20 Aug 1999 value to calculate a loss.

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