How does taxation on stock portfolios work?

[Concordia]

Originally Posted by AR_Six

I'm pretty sure your cost bas[is] gets set as of the point of transfer in the US.

No.

 

[AR_Six]

CB = adjusted cost base up here, though basis is also used, but thanks for a) the correction and b) for informing us all how it actually works, whenever you get around to it - is the ACB to the giftee not FMV as of when the property's transferred? Or is it simply nil? That wouldn't make much sense.

I am in no way qualified to advise anyone on tax in the U.S.A. except as it pertains to Canadian activities, so we'll add that caveat, but the foregoing was my assumption.

 

[pistolero]

Originally Posted by AR_Six

ACB = adjusted cost base up here, though basis is also used, but thanks for a) the correction and b) for informing us all how it actually works, whenever you get around to it - is the ACB to the giftee not FMV as of when the property's transferred? Or is it simply nil? That wouldn't make much sense.

I am in no way qualified to advise anyone on tax in the U.S.A. except as it pertains to Canadian activities, so we'll add that caveat, but the foregoing was my assumption.

Property transferred by gift retains the donor's cost basis in the hands of the recipient. The adjustment to FMV only applies to property transferred via inheritence. Also, the donor does not recognize gain or loss on the portfolio when it's gifted - and since the FMV is less than $13k, the gift itself has no tax consequences to either donor or recipient