Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I'm trying to file a return for my son, and I'm stumped.

My (now ex-) husband and I gave our son approximately 10K each worth of stock in 2000 and 2001 as gifts towards his college expenses. The cost basis for all the shares was $3.06/share (purchased in 1997). The stock was sold in two lots in 2001, for $18.31 and $18.02 per share respectively, with a total gain on the sale of approximately $13297.

Does he have to pay taxes on the sale of this stock since it was a gift, or not? From what I can tell from the tax tables, it looks like he may owe over $2K - yikes!!

He also had earned income of $2278 (no fed. or state taxes were withheld) and was claimed as a dependent on my ex-'s return. If anyone can shed some light on this, I'd be grateful.
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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.