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Author: 4aapl Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Re: Gifted Stock Date: 7/19/1999 3:59 PM
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"I looked in the FAQ's for an answer to this question, and was not able to find it in detail."

Try looking there again. The section titled "Gifts of Stock" goes through this exactly.

"I was gifted 180 Shares of SBC. The date that they were gifted to me, they were worth, lets say $50 to be simple. When I
sell, what are the tax implications?

1. What is the cost basis? Is it the cost when gifetd to me or the cost when originally purchased?

2. Is the holding period from when I get the gift, or when Grandma bought them? "

The basis and holding period are from when she bought them, though the limit of $10k to have gifts not taxed is from when you are given the gift. You didn't give all the info, but lets say she bought them at $40.share over a year ago. Then if you sold at $50 you would have your "profit" of $1800 taxed as long term capital gains....20% if you aren't in the 15% tax bracket.

Try reading through that section in the tax FAQ. It's in the Children/Inheritance subsection....and there is another file or 2 in there you should read too.

Fool On

Aaron
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