Should the club accounting software not support gift
giving?

Doesn't the cost basis change if the stock is a gift?

If my hubby gave me some Cisco stock today (say it is
selling for $18 a share) which she bought 15 years ago
( say if was for split adjusted $2 a share)
and I sold it today , what would I declare was the
cost basis of the stock? Did I make capital gains?
 
--- IraS1@aol.com wrote:

>
> Gifts are never subject to income tax. Gifts above a
> certain amount,
> currently $11K/year between any two individuals, are
> subject to gift tax, payable by
> the giver, not the recipient. (The rules are a bit
> more complicated than
> this, but that's the theory.) Gifts between spouses
> are never subject to gift
> tax.
>
> Ira Smilovitz
>
> In a message dated 8/23/2005 2:46:23 P.M. Eastern
> Daylight Time,
> joeydag@yahoo.com writes:
>
> Why isn't it a taxable transaction? Is it only
> because they are married or could one member "gift"
> another member at any time?
>
> --- IraS1@aol.com wrote:
>
> >
> > Absolutely not! That creates a taxable
> transaction
> > for the withdrawing
> > spouse where one doesn't exist.
> >
> > Ira Smilovitz
> >
> > In a message dated 8/23/2005 2:28:55 P.M. Eastern
> > Daylight Time,
> > llawshe@bivio.com writes:
> >
> > Seems as if all you have to do is withdraw fully
> > one of the
> > members and transfer all the units of one to the
> > other.
> >
> > Timothy Thomas wrote:
> > > Greetings! I have a husband and wife in the
> > club who have
> > > been individual members for 12 years and now
> want
> > to become
> > > one member. Can anyone help me with procedure
> to
> > follow?
> > > Thanks in advance
> > >
> > > Lounge Rat
> >
> >
> >
> >
> >
>
>
> "The knowledge of truth, even if harsh, has its
> pleasures"
> Giacomo Leopardi (1798-1837)
>
>
>
>
>


"The knowledge of truth, even if harsh, has its pleasures"
Giacomo Leopardi (1798-1837)

<<Should the club accounting software not support gift giving?>>

No, sorry, you just aren't sophisicated enough to handle it <g> If you
have been following the thread, you will see that bivio support will do
it for you, on request.

<<Doesn't the cost basis change if the stock is a gift? >>

No, not if the stock is later sold for more than the donor's cost basis.
In that event, the basis in the hands of the donee is the donor's basis.
If the stock is later sold for a loss, the basis is the fair market
value at the time of the gift.


Rip West
Saint Paul, MN