Transferring Trade Account- Tax Implications

Discussion in 'Taxes and Accounting' started by AlphaGeneration, Jan 25, 2010.

  1. Not sure if this is in the right thread, but...a family member recently transferred stock to my trading account (without selling it). The family member transferred the stock at a loss to me (they paid a higher price than the price I received it at). Do I get the tax loss on this, or does my family member?

    Thanks in advance!!
  2. Your basis is zero, so you pay the tax on the full sale price!
    So if your proceeds of the sale are $25,000, you owe tax on that full amount.

    There is I believe a Tax Free $13K CASH /parent gift exemption, but that is another issue.

    ***I am not a CPA, so talk to one for an offical answer.
  3. Do I get taxed that was transferred from the account?
  4. i would guess that since there was no sale no one gets the loss. in addition it would be treated like a gift for tax purposes. if you sell as the other poster said you will have a zero basis so it will be all profit.
    if it was inherited instead of a gift,which it does not sound like, then you get a stepped up basis and you could sell with 0 taxable profit.
  5. so if I give you 10k you pay tax on 10k? really? Zimbabwe?

    beware taking advice from the many turkeys on Et.
  6. Your basis is the Fair Market Value at the time of the gift since it is less than what they paid for it.
    [IRC 1015(a)
  7. That's ok, every turkey makes a mistake once in awhile.

  8. Thanks for the updated information!! I'm pretty damn relieved. Thanks again :D
    #10     Jan 25, 2010