Do I owe taxes on the full $10k? Or just the $200 in gains?
My uncle gifted me $10k in stocks. The stocks appreciated by maybe $200 before I sold them to make a down payment on a condo. What is my tax liability?
byu/BugConfident5457 intax
Posted by BugConfident5457
8 Comments
Your basis is the same as your uncle’s basis. So your gain will be net proceeds less uncle’s basis in the stocks.
You pay capital gains on the difference between the sales price and your uncle’s original purchase price of these stocks. Hopefully he had decently high basis. You also get to have the same holding period as he did so if he held them for over a year, they are long term capital gains to you as well, even if you didn’t hold them for a year.
What’s your expected annual income for 2025 (including the stock gains of $10K)? If it’s under $47K you’re in the 0% tax bracket for capital gains. Otherwise it’s probably 15%.
$10k gift should be covered by the gift tax exclusion.
Capital gains on the $200.
not an expert – how much of the 10k was the principal investment? if he invested 5k and it grew to 10k before he gifted it to you then you might be on the hook for capital gains for that 5k + the $200 extra that it had appreciated since it was gifted to you
So much incorrect information here. Don’t worry about gift tax. Your cost basis is the same as your uncle’s, so you need to find that out and the difference between that amount and what you sold it for is long-term capital gains income.
The answer is it depends on how it was passed, the original basis, how long he had the stocks, how long you had the stocks, and your expected annual income. It could be anything from $0 to thousands
Dude. Talk to an accountant not Reddit.
If they were gifted to you while HE was still alive, the cost basis is what he originally paid for them.
If you INHERITED them – which is seems like you did not, then the cost basis would be the value of the stocks on the day he died.