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jcyouth10
New Member

gift of stock taxability

We were gifted stocks the have a cost basis of $60K for 2020.  We had no choice but to sell because the company was acquired.  I know $30K of the profit was considered a gift to my wife and I filing jointly.  I know I need to pay capital gains but my question is how much of the stock proceeds from the sale will be counted towards income for federal income tax if any?  (not capital gains)

1 Best answer

Accepted Solutions
martinmarks
Level 9

gift of stock taxability

There is no gifting of 'profit' but only gifting of property....with gifts you get the giver's basis and holding period when you're figuring a gain and the lower of the FMV at the time of the gift or giver's basis when figuring a loss. If you know you have a gain you subtract the giver's basis from the sales price and that's your gain which would be a capital gain.

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2 Replies
martinmarks
Level 9

gift of stock taxability

There is no gifting of 'profit' but only gifting of property....with gifts you get the giver's basis and holding period when you're figuring a gain and the lower of the FMV at the time of the gift or giver's basis when figuring a loss. If you know you have a gain you subtract the giver's basis from the sales price and that's your gain which would be a capital gain.

View solution in original post

jcyouth10
New Member

gift of stock taxability

Got it - Thanks

 

my question is of the $60K that is going to be taxed for property gains tax - will any of the gift count towards my federal income taxes?

 

I have already figured the gain of $60K because I know the Cost basis and sale price of the stock.

 

thanks so much for your help and answer!

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