rec'd gift of 100 shares LU @$80/share, Sold for $240. Can I claim the $7,760.00 loss on taxes?

Answer 1

You can ignore the answer from I speak, since it is wrong. You do not pay taxes on a gift. If the gift exceeds the limit imposed by law the giver has to pay the tax, but the gift of $8,000 is below the tax limit so there is no gift tax.

As to your question, yes you can claim a loss. You have to know how much the donor paid for the stock and also how much it was worth when you received it. Here are the rules:

What is the basis of property received as a gift?

To figure the basis of property you get as a gift, you must know its adjusted basis to the donor just before it was given to you. You also must know its fair market value (FMV) at the time it was given to you. and whether any gift tax was paid. If the FMV of the property at the time of the gift is less than the donor's adjusted basis, your basis depends on whether you have a gain or loss when you dispose of the property. Your basis for figuring gain is the same as the donor's adjusted basis, plus or minus any required adjustments to basis while you held the property. Your basis for figuring a loss is the FMV of the property when you received the gift, plus or minus any required adjustments to basis while you held the property. See Adjusted Basis in Publication 551, Basis of Assets.

If you use the donor's adjusted basis for figuring a gain and get a loss, and then use the FMV for figuring a loss and get a gain, you have neither a gain nor loss on the sale or disposition of the property.

If the FMV is equal to or greater than the donor's adjusted basis, your basis is the donor's adjusted basis at the time you received the gift. Increase your basis by all or part of any gift tax paid, depending on the date of the gift. See Gifts received before 1977 in Publication 551, Basis of Assets. Also, for figuring gain or loss, you must increase or decrease your basis by any required adjustments to basis while you held the property. See Adjusted Basis in Publication 551, Basis of Assets.

For more information on the gift tax, see Publication 950, Introduction to Estate and Gift Taxes..

Answer 2

The value of the shares when you received them doesn't normally matter. Gifts are not treated that way -- you get the donor's original basis, not the basis on the date of the gift UNLESS the value on that date is less than their original basis. You need to know the donor's basis in the shares. If the donor paid $1 per share at some point in the past then your total basis would be $100 and you would have a small taxable gain.

If you cannot determine the donor's basis then your basis is $0 and the entire sale is taxable to you.

Answer 3

If you claimed the gift and pay taxes for the 100 shares when you got them I believe you could. If you never paid taxes for the 100 shares even tough they were a gift you could be in trouble.

IRS will tax anything with value including gifts, prizes, etc etc.

Answer 4

yes