Gift Tax Basis Rules
In 2026, Susan gives her daughter stock worth $180,000. Susan's adjusted basis in the stock is $50,000. Several years later, the daughter sells the stock for $240,000.
Ignoring any gift tax consequences, what amount of taxable capital gain will the daughter recognize?
For appreciated property received by gift, the recipient generally receives the donor's carryover basis.
Sale price: $240,000
Carryover basis: $50,000
Taxable capital gain: $240,000 − $50,000 = $190,000
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