Message Font: Serif | Sans-Serif
No. of Recommendations: 0
my wife an I have been giving gifts of
stock to our close family members. We keep
the gifts under $10K (market value)per person.

Questions is... when my brother sells the
stock i gave him as a gift, what are his
tax liabilities???...

I bought the stock 10 years ago and
my basis was $5..when i gave the stock
as a gift it was selling at $65. He plans
to sell the stock (he held it more than 12 months)
at $75. does he owe tax on all of the $75/ share
or $70 (75-5), or $10 ( 75-65)..pls advise
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.