2006-10-20 03:18:37 · 3 answers · asked by vne4ever 2 in Business & Finance ➔ Taxes ➔ United States
Did you get a gift or inheritance? There is a crucial difference. Inheritance will give you the fair market value as at date of death (generally speaking). For stock quoted on a stocvk exchange fair market value is the average of the high and low prices reported for the day. you can find those on Yahoo Finance.
If it was a gift from a living person you would need to know what their basis is. you also take over their holding period so if,between you, you held it for more than a year you will pay the lower capital gains rate.
If using the donor's basis results in a gain but using fair market value at the date of gift results in a loss then you have neither gain or loss. If they both result in a gain you use the calculation that uses the donor's basis.
I've attached a couple of links. The first one talks about mutual funds but the principles are the same.
2006-10-20 04:00:30 · answer #1 · answered by skip 6 · 1⤊ 0⤋
You will need to find out what the person who gave it to you paid for it and when they bought it. You will have to file a Schedule D and the 1040 long form the year that you sell it.
2006-10-20 03:31:31 · answer #2 · answered by Wayne Z 7 · 0⤊ 0⤋
Federal Sch D and instructions thereto.
2006-10-23 04:24:43 · answer #3 · answered by acmeraven 7 · 0⤊ 0⤋