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Report Stock Gift in Turbo Tax

Forum|Forum|7 years ago
June 5, 2019
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A Gift of Stock was transferred into my Broker account. I have a 1099, with unknown Cost basis. Turbo Tax will not allow my to tag this as a gift.

I do not know how to record this in turbo tax. I know the cost basis, the purchase date of the stock.

TurboTax Deluxe Online

Best answer by TomYoung

Go back to the interview where you entered to 1099-B information.

Click the blue "Guide me step-by-step" button and select the "uncommon situations" button. Select "stock", enter the missing information - probably only shares - and then select "I received this stock as a gift." TurboTax will elicit the required information - basis and FMV at date of gift - and properly report the trade.

Tom Young

T

TomYoungAnswer

Employee

Go back to the interview where you entered to 1099-B information.

Click the blue "Guide me step-by-step" button and select the "uncommon situations" button. Select "stock", enter the missing information - probably only shares - and then select "I received this stock as a gift." TurboTax will elicit the required information - basis and FMV at date of gift - and properly report the trade.

Tom Young

P

pricey13

Is this a necessary step [i.e. to report every gifted stock as a gift]? I ask for 2 reasons. (1) It is cumbersome to manually enter this info for hundreds of gifted stocks (2) I downloaded the desktop software with hopes of there being a shortcut to mark all stocks as 'gifts' but instead I ran into a separate issue; it's not even asking me for this info. Is it important that I resolve this issue or not a risk to submit without identifying every gifted stocks? Thanks,

DaveF1006

No, you will need to report each sale individually as a gifted stock in Turbo Tax online. I tried to see if this option was an option for summary sales but it wasn't. The option never appeared in the summary section nor in the desktop version.

You can still summarize these transactions in both versions of the TT product instead of reporting them individually. The cost basis of the gifted stock is determine by the lower of the giver's original cost basis or the fair market value (FMV) of the stock at the time you received the gift.

Tax treatment of the gifted stock is not treated any differently than other stock sales as long as the right basis is determined.

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