Gifts Vs Taxes
Posted in gift on 05/21/2010 06:37 am by admin
How do I determine Cost Basis for securities Sold in my kid’s UGMA?
I need to come up with the Gain/Loss (if there can be a Loss) for tax purposes. Is it the cost value at the time of the gift? The gift giver’s cost basis? Or, is it all Gain?
Does long term vs. short term still come into play? And, does the fact that the proceeds were used towards college education have any bearing on the tax implications?
Thanks, to both Wayne and Judy! Wayne was first, but Judy answered the follow-up questions as well. So, I’ve got to give it to the lady.
The basis and date of purchase is that of the gift giver. Yes, short and long term still are used, although it might not make any difference in the tax owed if any. And using the money toward college has no tax implications re the capital gains.
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