I own shares in a mutual fund that have appreciated. If I transfer these shares to another person within the same fund family !.- Is this a taxable event? 2.- What would be the basis of the stock for the other person?
Is this transfer in exchange for something, in which case it is a taxable eent? Of is it a gift, in which case there could be a gift tax implication but not an immediate income tax issue.
If the trasnfer is in lieu of cash etc, the basis to the recipient is FMV at time of transfer.
If a gift, then if the FMV is higher than your basis, your basis will be the basis of the gift. Else the stock carries a dual basis, with the actual basis determined at time of sale, as follows:
When sold, the FMV at time of ift is used to calculate loss, and your basis at time of gift is used to calculate gain. (It is possible there is neither gain nor loss.)
",,,another PERSON within the same FUND FAMILY"? Art explained what happens when shares you currently own wind up being owned by someone else. On the off chance that you were talking about "exchanging" your shares in Fidelity Fund A for shares in Fidelity Fund B, that's a plain sale, which results in a capital gain or loss, and a purchase, with a basis equal to what you paid for the new shares.
Phil Marti VITA/TCE Volunteer Clarksburg, MD
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.