Correct. If you had purchased it yourself, you could knock off the purchase price, and only pay on the difference.
However, since you paid nothing, you're on the hook for the whole enchilada.
"Correct. If you had purchased it yourself, you could knock off the purchase price, and only pay on the difference.
However, since you paid nothing, you're on the hook for the whole enchilada."
Apparently you're both rather confused on the tax laws:
I received some gold coins as a gift from my parents and then sold them a month later. Must I report it as a gain and if so where?Courtesy of: https://ttlc.intuit.com/questions/2642257-i-received-some-gold-coins-as-a-gift-from-my-parents-and-then-sold-them-a-month-later-must-i-report-it-as-a-gain-and-if-so-whereIn the case of a gift, the donor is responsible for reporting the gift; the recipient of a gift is not required to pay taxes on the gift. The annual gift tax exclusion for 2014 is $14,000 (same for 2013).
For more information, see IRS Estate and Gift Taxes.
The original purchase price would be what the giver not you paid for it.
So, if you received a $100 espresso machine as a wedding gift, and later sold it for $100 or less, there's nothing to report.
On the other hand, if you sold the espresso machine for more than $100, you'd only report the profit you made above the original $100 purchase price.