Discussion:Gift of stock
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Discussion Forum Index --> Advanced Tax Questions --> Gift of stock
Discussion Forum Index --> Tax Questions --> Gift of stock
| 17 March 2009 | |
| I'm having a hard time finding the info I need. My client received a gift of stock from her mother. Her mother's basis is 4000.
The daughter immediately sold it for 10,000. Does she have a 6000 gain? Is it the basis that was gifted or the FMV? I have as many opinions on the issue as dollars gifted. The most authoritative source I've found is Quickbooks which seems to say yes. I can't fihd my answer in the IRS code or in prior discussions. Of course my client needs an answer I can verify is correct. | |
Chris2lane (talk|edits) said: | March 17, 2009 |
| You will have a carryover basis when the donee will report a gain on the sale of the gift. If a loss will be reported, the basis is the lower of the donor's basis or the FMV of the property on the date of the gift. | |
| March 17, 2009 | |
| Publication 551, Basis of Assets: | |
| 17 March 2009 | |
| Thanks so much! I hadn't even considered that Pub.
She won't be happy, but that's the way it is. We can't slways make them happy. I tell them they owe 5000 and they say, "Is that all? I was expecting a lot more." I tell them they have a 5000 refund and they say, "Is that all? I was expecting a lot more." Can't win for losing! | |
