I am doing my daughter's taxes and I gifted her some stock a couple years ago. I am trying to figure out where I report the stock as a gift, because I am not getting that question asked. Also, when I put in sales proceeds of about 20000, the federal refund box at the top does go down, which makes sense, but when when I put in my cost basis, the refund amount goes back UP to what the original amount of refund was before I entered the proceeds. With the stock sale, she and her husband have total income of about 100k. Help!
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The cost basis of the stock is your cost basis at the time of the gift. You don’t report the gift now, you should have reported it on form 709 when you made the gift if the value exceeded the annual exclusion amount. After entering the trade look at Sch D to see how it was handled and at the capital gains worksheet to see how it was taxed.
Thank you for replying! On the Schedule D, Capital Gains and Losses page, the only number showing up anywhere are the proceed amount, the cost basis I entered, and the different between the 2. My daughter had no other stock sales of any kind, short or long term. Does it make any sense that my refund amount would go back to the original amount after I entered both the proceeds and the cost basis? I'm baffled
Don’t get bogged down by the refund monitor which is unreliable until the return is finished.
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