MyVirtualCPA : Thank you for your quesstion, and thanks for using JustAnswer.com
MyVirtualCPA : Yes, you are correct - the donors basis passes to the person they gave the gift to
MyVirtualCPA : therefore the basis is 0 for the gift
MyVirtualCPA : Whenever you give a gift your basis passes on to the person you gave the gift to
MyVirtualCPA : In this case, the basis is then 0.
MyVirtualCPA : Is there anything else I can assist you with? IF not, please rate my response as "excellent" so that I may receive credit for assisting you today
Customer: Therefore if the company is sold, the full sales price becomes taxable as there is no basis?
Customer: May I have your confirmation or other on above comment. Thanks
MyVirtualCPA : Yes, that is correct. If the company is sold, the entire amount is taxable with a basis of 0