Hello there,
it does not matter if the shares of stock had no commercial value when they were given to you, you need to determine their fair market value. You may wish to contact the company for some type of appraisal or historical value for the date that your received them. Generally, when there is a gain, the basis in gifted property is the lower of the basis of the donor or the fair market value on the date the property was received. Here is a link to the process for determining basis in a gift: http://library.findlaw.com/1999/Jan/1/126098.html
When you sell the stock, presuming the stock has appreciated since the donor owned it, you will have a captial gain. You will assume the holding period of the donor, and report the transaction on Schedule D. Long term capital gain (held for more than 1 year) is taxed at a maximum of 15%.
Enrolled Agent
10+ years tax preparation and tax advice.
No problem,
Best of luck to you!