AlanT222
Expert Alumni

Investors & landlords

In order to determine what basis to use in the stock, you must know the donor's original cost, the value of the stock at the time it was gifted to you and the price you sold it for.  

 

If you sell the stock for more that the donor's cost, you would use the donor's cost as the basis.  

If the FMV of the stock was less than cost, you would use the FMV as the basis if you sold the stock for less than cost, otherwise, you would use the cost as the basis.  

If you sell the stock for a price between your original cost basis and its market value at the time of the gift, there will be no gain or loss to report.

 

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