Cost Basis and Holding Period for Appreciated Stock Received as a Gift

Here’s how to report on your tax return the cost basis and holding period for appreciated stock you sold and that you had acquired as a gift (not inheritance):
  1. “What if I sell property that has been given to me?  The general rule is that your basis in the property is the same as the basis of the donor. “   IRS.GOV LINK
  2. “If you receive a gift of property … your holding period is considered to have started on the same day the donor’s holding period started.”  IRS.GOV LINK

 

About the Author:

Parker Evans, CFA, CFP, CMT is President of Successful Portfolios LLC, an SEC Registered Investment Advisor Firm based in Clearwater, FL. Parker helps individuals, families, and organizations plan and manage custom investment portfolios at leading brokerages including Charles Schwab, TD Ameritrade, and Interactive Brokers.