Phil's Father Died on January 10,2016

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The Answer is Phil had a tax basis for the stock equal to its $45,000 basis at the date of his father's gift of the stock increased by the gift tax paid on the stock's unrealized appreciation in his father's hands.He also had a long-term holding period because the father's 20-year holding period is added to Phil's holding period.Consequently,he had a $471,310 ($545,000 - $73,690)long-term capital gain when he sold the stock.

Phil had a tax basis for the stock equal to its $45,000 basis at the date of his father's gift of the stock increased by the gift tax paid on the stock's unrealized appreciation in his father's hands.He also had a long-term holding period because the father's 20-year holding period is added to Phil's holding period.Consequently,he had a $471,310 ($545,000 - $73,690)long-term capital gain when he sold the stock.

Phil's Father Died on January 10,2016

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Phil's Father Died on January 10,2016

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