Hi there,
Here's my situation. My child (23) is starting a fulltime job in July and will have under $44k in income during the year. Is this strategy a possibility?
Me -> Gift him $18k in significantly appreciated stock (held for many years)
He -> Sells as soon as he gets this gift
Does that really mean that our (combined) tax liability will be zero, due to my avoiding taxes altogether, and him avoiding capital gains because of income limits? And separately, are the proceeds from the sale of stock added to his income? I.e., he actually needs to make less than $26k in W2 income during the year?
And to take that further, if he were to pay me (back?) $18K from his income over the course of time, would I essentially have sold my stock for $0 in capital gains?
Sure, the numbers are small, but the savings are still substantial.
Thanks,
Auro
Here's my situation. My child (23) is starting a fulltime job in July and will have under $44k in income during the year. Is this strategy a possibility?
Me -> Gift him $18k in significantly appreciated stock (held for many years)
He -> Sells as soon as he gets this gift
Does that really mean that our (combined) tax liability will be zero, due to my avoiding taxes altogether, and him avoiding capital gains because of income limits? And separately, are the proceeds from the sale of stock added to his income? I.e., he actually needs to make less than $26k in W2 income during the year?
And to take that further, if he were to pay me (back?) $18K from his income over the course of time, would I essentially have sold my stock for $0 in capital gains?
Sure, the numbers are small, but the savings are still substantial.
Thanks,
Auro
Statistics: Posted by Auro — Sat Jun 29, 2024 4:29 pm — Replies 22 — Views 1248