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For stock received as a gift, child's basis will be the parent's original basis. Only inherited property get the set-up basis treatment (fair market value of the property on the day the original owner died).
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If the value of the stock is less than 14K, no reporting is required, if the value is more, parents will be required to file gift tax return, form 709.
Gift tax, if any is always claimed/paid by the donor, never by the receiver of the gift. In addition to 14K annual exclusion, there's also lifetime gift exclusion of 5.43M, which means the donor can gift 5.43M during his/her lifetime before he/she has to pay gift tax.
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