For a detailed explanation of the rules for determining cost basis of a gift, see our website page:
I Received a Gift. In most cases, your cost basis will be whatever the cost was in the hands of the donor. However, there are situations where this case does not apply.
Gifts to non-spouses carry a "double basis" that must be tracked until the asset is sold.
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You can use our calculator to determine
the cost basis for your gift if you know
the fair market value on the date of the
gift and the cost basis of the donor.
If the fair market value at the time of the
gift was less than the donor's cost basis,
you will not be able to know your cost
basis for sure until you sell it! That is
because your cost basis for a loss will be
different from your cost basis for a gain.
| Click on the image below
to access the gift calculator
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| Gift Calculator |
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