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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
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