topic gift of stocks in Get your taxes done using TurboTax

gift of stocks

lynnyj0919 — Sat, 18 Jan 2025 16:54:35 GMT

My Uncle left me $8000. in stocks that i cashed in ,do i have to claim them an how much will i be paying ?

Re: gift of stocks

Bsch4477 — Sat, 18 Jan 2025 17:34:26 GMT

The cost basis of the stock is the value at the time of the death of your uncle. Your capital gain is the difference between the cost basis and the proceeds. Your brokerage should have that data as well as any reinvested dividends affecting the cost basis. Capital gains tax depends on your taxable income but is generally 15%.
You can’t report stock sales with the free program. You will be prompted to upgrade.

Re: gift of stocks

DianeW777 — Sat, 18 Jan 2025 17:36:25 GMT

Yes, you will claim the sale of the inherited stock on your tax return. They are treated as a sale of investment property and reported on Schedule D. The amount of gain (or loss) depends on two things:

The value of the stock on the date of death of your uncle, which will be considered your cost of the stock as if you had paid that amount for the stock.
The selling price on the date of sale.

The difference in these two figures will determine whether you have a gain or a loss. A gain will be added to your other taxable income, or a loss will reduce your other taxable income.

This link will provide more information about capital gain or loss: IRS Tax Topic 409

In TurboTax you can follow these steps to enter the sale (click the link for more information):

Open or continue your return.
Navigate to the investment sales section:
- TurboTax Online/Mobile: Go to investment sales.
- TurboTax Desktop: Search for investment sales and then select the Jump to link.
Answer Yes to the question Did you have investment income in 2024?
- If you land on the Your investments and savings screen, select Add investments.

We are very sorry for your loss.