Discussion:Gift of stock and subsequent sale
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Discussion Forum Index --> Advanced Tax Questions --> Gift of stock and subsequent sale
Discussion Forum Index --> Tax Questions --> Gift of stock and subsequent sale
Wjalverson (talk|edits) said: | 14 April 2008 |
| I've already e-filed the t/p return and it's been accepted. He just called me to ask about stock his father and given him and whether there are tax implications. I told him not until you sell the stock. He then tells me he did sell it. The only brokerage statement I received from him does show the sale of the stock he now tells me was given to him. The brokerage statement has both the current sale price and the original cost. Should my client's basis in the stock have been $0.00 instead of the historic cost? The historic cost was what his father paid prior to gifting it to my client? | |
Seaside CPA (talk|edits) said: | 14 April 2008 |
| Basis would either be father's basis or FMV at date of gift. Would use FMV at date of gift if stock was sold at a loss and donor's basis in stock exceeded its FMV at the time of the gift. | |
Wjalverson (talk|edits) said: | 14 April 2008 |
| Therefore, I should use the FMV of the stock on the date of the gift versus the donor's basis since the gift was very close to the time of the sale of the stock. Correct? | |
| 14 April 2008 | |
| no, go back to tax 101:
need to know dad's basis compare that with FMV at date of gift use lower of the two if a loss dad's basis if a gain | |
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