According to Investopedia, stocks provide a "share" of company ownership. As the company's assets and earnings grow, stock prices increase, which generates money for shareholders. Selling stock received as a gift isn't much different from selling regular stock. Once the stocks have been transferred to your account, selling is relatively easy. There are some differences, however, when dealing with capital gains. Here are a few tips for selling stock received as a gift.

Transfer Stocks

The first step in selling gift stocks is transferring the stocks to your brokerage account. The donor will contact his brokerage firm and order the stocks be transferred to your account. If you don't have a brokerage firm, you can use the donor's firm or select a different company. Once the shares are in the account, the transaction is halfway done. Contact the brokerage firm and request the shares be sold. Some brokerage firms allow this transaction to be completed online, which can make the process easier.

Schedule D

According to Smart Money, filling out schedule D is important for calculating the capital gains on stock. Get the donor's acquisition date of the stock to complete this form. When selling stock, you have a financial responsibility to pay taxes on the stock capital gains. For example, if the donor purchases the stock for $40 a share and you sell it at $50 a share, your must pay taxes on $10 a share.

Stock Gift Tax

In some cases, the donor will pay a "stock gift tax" upfront. This covers the taxes incurred before the stock was given as a gift. This decreases the tax liability when selling stock shares. Determine if the donor purchased this gift tax by contacting the brokerage firm that manages the stock. If you're unsure how to calculate capital gains on stock (especially when gift tax complicates the equation) contact your tax advisor. He can help you determine the correct amount owed to the IRS.

Source:

IRA: Property Received as a Gift

Smart Money: Taxes on Investments Received as a Gift or Inheritance

Investopedia: Stocks