When you give the gift of stock, is the value at the time of the gift or when it's used?

Answer by  Steve82 (68)

Most likely you are given the gift of shares of a stock. It depends on when YOU use it. You have possession of the shares and can cash out at your discretion. When it is given to you it will have a value but it will only be a cash value when you sell the stocks.

Answer by  gleverance (720)

The basis for the receiver is the value at the time of transfer. The difference from that price and the final sales price will be used to determine capital gains.

Answer by  tamarawilhite (17883)

When stock is given to another person, the cost basis is set at the time of the gift. The taxable value on the gift for both giver and receiver is its value at the time it is given. So if the tax is depreciated right now, gift taxes are based on its current, lower value.