I have a client that wants to gift his Vanguard investment stock account to his adult son now while he is still alive.  I am wondering, if the son decides to sell any of the stock, what cost basis does he use and what holding period?  I did some online research and a few well known financial institutions say gifted stock uses the FMV of when the stock was gifted.  Other well known financial institutions say the cost basis is what it was for the original owner.  I found nothing for the holding period.