she may have to use form 8615 to figure her tax
Who Must File
Form 8615 must be filed for any child who meets all of the following
conditions.
1. The child had more than $2,200 of unearned income.
2. The child is required to file a tax return.
3. The child either:
a. Was under age 18 at the end of 2021,
b. Was age 18 at the end of 2021 and didn’t have earned
income that was more than half of the child's support, or
c. Was a full-time student at least age 19 and under age 24 at
the end of 2021 and didn’t have earned income that was more than
half of the child's support.
if she must file this form then the tax is based mostly on your tax rate and if she prepares her return she's going to need access to your return to properly complete the 8615
if not whatever tax bracket she's in
for purpose of determining gain or loss
if the FMV on the date of the gift is greater than your tax basis, your tax basis is used for determining gain
if the FMV is less than your basis on the date of gift then you use FMV for determining loss and use your tax basis for determining gain. if using FMV results in a gain and using your basis results in a loss, there is no gain or loss
example 1)
FMV 15000
your tax basis 9000
your tax basis is used to compute her gain or loss
example 2)
FMV 9000
your tax basis 15000
sell for 12000
since using FMV results in a gain and using your tax basis results in a loss there is no gain or loss for tax purposes
example 3)
FMV 9000
your tax basis 15000
sell for 8000
since using FMV results in a loss that is used as her tax basis
example 4)
FMV 9000
your tax basis 15000
sell for 18000
since using both results in a gain she uses your tax basis
