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I have stock gifted by a parent. I have assumed the original cost basis of the stock, purchased 14 years ago. If I should sell the stock before one year has passed, will I owe shortterm capital gains tax, even though the cost basis is from 1986? I'd like some Foolish opinions so that I don't just foolishly assume that I can claim it as a longterm investment.

I'm not positive, but it seems like it would have to be taxed as a long term cap gain, considering you are required to assume the 1986 cost basis.

Check out http://www.fairmark.com/stockbas/gift.htm .
You might find an answer there. They also have a helpful message board.

fatcity
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