Quote:
Originally Posted by retiredguy123
The key is the cost basis of the stock. With a gift, the recipient of the stock must keep the same cost basis that the giver had. So, if the giver had a cost basis of $10K, the recipient must live with that basis. But, with an inheritance, the cost basis is "stepped up" to the stock value at the time of death (although, in some cases, I think the beneficiary may be able to opt to use the stock value 6 months after death instead). Once the gift or inheritance takes place, the cost basis is set and the owner of the stock must pay a capital gains based on the sale price minus the cost basis. It doesn't make any difference when the giver dies after he made the gift.
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That makes perfect sense. It seems like when it comes to appreciated assets, gifts and inheritance are not the same things! Thanks again
Joe