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

What if she bought them the day before they were gifted? Then am I in the "Short Term Gains" boat since they would be held under a year if I sold now.

I reply:

Yep, that's how it works. You get the giftor's holding period. By the way, the basis rules for gifts change (unfavorably) if you're selling at a loss. On the other hand, if the you had inherited the stock rather than receiving it as a gift, you would have been entitled to a "stepped up basis" -- the value at death, or six months after death (depending on the executor's election). --Bob
Print the post  


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.
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.
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.