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Subject:  Re: tax on sale of gift stock Date:  3/8/2001  9:36 PM
Author:  BigBunkler Number:  47987 of 128043

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.
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