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My brother gifted me some stocks a few years back. Due to my income at the time I didn’t pay any capital gains when I sold (his income is higher so he would have probably had to pay 15% on the capital gains).

Is there a time or amount limit of when this is allowed or is this anything I should be concerned about altogether?


Presumably, you still used his basis to determine the gains when you sold the stocks? Because the receiver of a gift retains the basis that the giver had. There is no step up in basis for a gift given while the giver is still alive.

So was it really a gift? Or was there a plan that you would sell, keep the cash without paying taxes and then 're-gift' later? Because if there was a plan for you to 're-gift', then that can be pursued by the IRS for up to 6 years after the last fraudulent act.

Otherwise, I would say that money is fungible.

I would also note that if his basis in the gifted stocks was more than the gift tax limit in the year that your brother gifted you the stocks, he should have filed a gift tax return. And if the amount that you plan on giving your niece is more than $15,000, you will need to file a gift tax return.

AJ
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