 Tax question |
| Tax question |
 Mar 2 2008, 03:59 PM
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#1
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 Group: Members Posts: 2,329 Joined: 20-June 07 Member No.: 1,243  |
I know you're taxed on capital gains when selling stock that you buy. But what about stock that you're given?
If you buy XX stock for $1k and you sell it for $2k you pay taxes on gains, which is $1k. But if you're given $1k worth of stock and you sell it for $2k, are you taxed on capital gains ($1k) or what the total value of what you sell it for? ($2k) --------------------   |
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Mar 9 2008, 06:52 PM
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#2
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 Group: Members Posts: 180 Joined: 23-February 06 From: San Francisco, CA Member No.: 37 |
QUOTE (Oasis @ Mar 2 2008, 04:59 PM)  I know you're taxed on capital gains when selling stock that you buy. But what about stock that you're given? If you buy XX stock for $1k and you sell it for $2k you pay taxes on gains, which is $1k. But if you're given $1k worth of stock and you sell it for $2k, are you taxed on capital gains ($1k) or what the total value of what you sell it for? ($2k) For stock that's given to you, assuming you hold it in a taxable account, your capital gain is calculated using THE GIVER'S cost basis. (So the value of the stock at the time of the gift is completely irrelevant; you don't get to step up the basis at the time of the gift.) Your capital gain = sale price - what your parents (or whoever gave it to you) bought it for. Hope that helps. |
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Oasis Tax question Mar 2 2008, 03:59 PM
Spectatrix I think you'd have a gift tax on 1k and capita... Mar 2 2008, 04:25 PM jwttu I havent taken tax accounting (because i think the... Mar 2 2008, 05:45 PM Dogmeat I would assume you have to report the stock you ar... Mar 9 2008, 06:53 PM impala454 If it's in his name, the broker company will s... Mar 9 2008, 10:47 PM
dauss Look at the gift tax. You can give up to $12... Mar 10 2008, 01:02 AM |
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