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No. of Recommendations: 0
I recieved, in February 1998, \$10,000 in stock as GIFT from parent (donor). Donor paid no tax on gift. Stock was sold by me in March 2000 for about \$6500. (Proceeds were then used to purchase other stock.)

QUESTION: what is my cost basis of the sold stock for tax reporting purposes on my 2000 Schedule D? Is ir zero? \$10,000 ? Or does it have to be calculated by some formula?

mmitcheroo@aol.com
No. of Recommendations: 7
I recieved, in February 1998, \$10,000 in stock as GIFT from parent (donor). Donor paid no tax on gift. Stock was sold by me in March 2000 for about \$6500. (Proceeds were then used to purchase other stock.)

QUESTION: what is my cost basis of the sold stock for tax reporting purposes on my 2000 Schedule D? Is ir zero? \$10,000 ? Or does it have to be calculated by some formula?

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It is not zero. Your cost basis is simply what your parent paid. On a gift, the cost basis is passed through.
HTH
--BigBunk
No. of Recommendations: 1
QUESTION: what is my cost basis of the sold stock for tax reporting purposes on my 2000 Schedule D?

Your date acquired is the date the donor bought the stock. Your starting point basis is the donor's basis. If you sold for a gain from that basis, that's the basis you use. If you sold for a loss from that basis, see Publication 551.

Phil Marti
VITA Volunteer