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Marvin,EA
Marvin,EA, Enrolled Agent
Category: Tax
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Experience:  Enrolled to Represent Taxpayers Before The IRS
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My father wants to gift his 5 kids and their 4 spouses $10,000

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My father wants to gift his 5 kids and their 4 spouses $10,000 each in stock for a total of $90,000. His basis on the stock is less than a dollar per share but now sells for $40/share. 1. Is someone responsible for capital gains on the stock? 2. If I sold the stock immediately is it short term or long term for capital gains? and is it treated at the original basis of the stock or when he gives it to me.

Hello and thanks you for using Just Answer. There are no gains on losses from the gift of the stock to the spouses and their kids.

 

The spouses and their kids basis in the stock are the original basis of your father basis in the stock.

 

Any gains from the sale of the stock are long-term capital gain.

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