WebDec 6, 2004 · A recipient's cost basis (and holding period) for a gift of stock is the same as the donor's. So, although your son received the stock at $100 per share and held it just one month, his cost basis ... WebOct 31, 2024 · Answer. To figure out the basis of property received as a gift, you must know three amounts: The donor's adjusted basis just before the donor made the gift. The fair market value (FMV) of the property at the time the donor made the gift. The amount of any gift tax paid on the gift ( Form 709, United States Gift (and Generation-Skipping …

26 U.S. Code § 1015 - Basis of property acquired by gifts and …

WebFeb 20, 2024 · In other words, if you give someone $1,000 worth of stock, with a cost basis of $100 and a holding period of a year and a day, and the beneficiary sells immediately, … WebDec 1, 2024 · The annual gift exclusion amount per gift recipient is $16,000 for tax year 2024 and $17,000 for tax year 2024. The lifetime gift exemption is $12.06 million for tax … cher believe concert

How do I determine the cost basis of stock I received as a …

WebOct 7, 2024 · When you give the gift of stock, the recipient inherits the cost basis and holding period of the stock you gave. If you bought the shares long ago and they’ve … WebOn your $90,000 gain ($100,000 minus the cost basis of $10,000) you pay $18,450 in taxes (15% federal capital gains tax plus the 5.5% state tax), resulting in $81,550. This amount will be lower if you trigger the 20% tax rate on capital gains and the 3.8% Medicare surtax. You get a tax deduction for the net amount of cash that you have donated. WebIf the gift value exceeds the limit, the person has to file a gift tax return. The recipient of the stock shares doesn’t owe capital gains taxes, until the stocks are sold. At that time, the cost basis and holding period of the person who gifted the shares will need to be known in order to determine the tax liability. flights from dfw to palm springs california