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The recipient gets the stock with your basis and holding period and will calculate gain accordingly. What the recipient does with proceeds of sale afterward doesn't matter. The special rules for charitable contributions are irrelevant. See IRS Publications 550 and 551.

Thanks for the information. So the recipient would still have a LT cap gain, but if they have no other income wouldn't they still be exempt from filing or are there special rules in place to prevent that? We're only talking about a couple thousand dollar gain.

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