Comments on: Stock – How do capital gains work for transferred stock? http://yareo.net/stock-how-do-capital-gains-work-for-transferred-stock.html Sat, 17 Mar 2012 06:37:26 +0000 hourly 1 http://wordpress.org/?v=3.2.1 By: kelby7670 http://yareo.net/stock-how-do-capital-gains-work-for-transferred-stock.html#comment-15144 kelby7670 Thu, 29 Dec 2011 20:37:19 +0000 http://yareo.net/stock-how-do-capital-gains-work-for-transferred-stock.html#comment-15144 The tax preparer is correct. You need to check historical quotes for the stock and figure out the best you can how much your grandmother paid for the exact stock that she gave you. That is it's basis. I am sure that IBM did not understand you question. This year I sold some stock that my grandfather bought in 1912. The basis of the stock was its value in 1969 when my mother inherited it because inheriting stock does change it's basis to the value at that time. When she gave it to me in1985, it's basis did not change. It ended up that the basis dropped below 0 due to non-dividend distributions. That's like saying I was paid to take the stock. The tax preparer is correct. You need to check historical quotes for the stock and figure out the best you can how much your grandmother paid for the exact stock that she gave you. That is it’s basis. I am sure that IBM did not understand you question.
This year I sold some stock that my grandfather bought in 1912. The basis of the stock was its value in 1969 when my mother inherited it because inheriting stock does change it’s basis to the value at that time. When she gave it to me in1985, it’s basis did not change. It ended up that the basis dropped below 0 due to non-dividend distributions. That’s like saying I was paid to take the stock.

]]> By: KlemKiddleHopper http://yareo.net/stock-how-do-capital-gains-work-for-transferred-stock.html#comment-15143 KlemKiddleHopper Thu, 29 Dec 2011 20:17:00 +0000 http://yareo.net/stock-how-do-capital-gains-work-for-transferred-stock.html#comment-15143 Granny can claim from purchase price to transfer price (to you) loss or gain You would value the stock on the effective date of transfer to you and the value when you received payment for the stock - if more than date of transfer you have a capital gain - if less - you have a loss - Most likely the little time you kept the stock - there was not that much change in value Granny can claim from purchase price to transfer price (to you) loss or gain

You would value the stock on the effective date of transfer to you and the value
when you received payment for the stock – if more than date of transfer you have
a capital gain – if less – you have a loss -

Most likely the little time you kept the stock – there was not that much change in
value

]]> By: mrreliable3599 http://yareo.net/stock-how-do-capital-gains-work-for-transferred-stock.html#comment-15142 mrreliable3599 Thu, 29 Dec 2011 20:02:23 +0000 http://yareo.net/stock-how-do-capital-gains-work-for-transferred-stock.html#comment-15142 The recipient's cost basis of stock received as a gift is the lower of cost or Fair Market Value at the time of the gift. A person on the phone at IBM is not going to understand tax law, which is obvious from their erroneous advice. I use "Historical Stock Quotes" often. Especially in situations like this, where the actual cost of the stock might not be available because it was so long ago, if you can come up with a date, you can search for historical stock quotes to find out what the price was on a given day. Try http://bigcharts.marketwatch.com/. The recipient’s cost basis of stock received as a gift is the lower of cost or Fair Market Value at the time of the gift.

A person on the phone at IBM is not going to understand tax law, which is obvious from their erroneous advice.

I use “Historical Stock Quotes” often. Especially in situations like this, where the actual cost of the stock might not be available because it was so long ago, if you can come up with a date, you can search for historical stock quotes to find out what the price was on a given day.

Try http://bigcharts.marketwatch.com/.

]]> By: Wayne Z http://yareo.net/stock-how-do-capital-gains-work-for-transferred-stock.html#comment-15141 Wayne Z Thu, 29 Dec 2011 19:56:58 +0000 http://yareo.net/stock-how-do-capital-gains-work-for-transferred-stock.html#comment-15141 Gifts are valued at the price that the person who gave them to you paid? Inheritances are valued as of the date of death. Your tax preparer is correct. Gifts are valued at the price that the person who gave them to you paid?

Inheritances are valued as of the date of death.

Your tax preparer is correct.

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