Can I transfer appreciated stock to a minor child with no income, sell it, then pay taxes at their rate?
I have appreciated company stock that I have held over one year. I purchased it with the intention of using it for my childrens (age15 and 16) college education. I would like to gift it to them, then they could sell it. Since capital gains tax goes to 0% in 2008 for low income people, and at best they will have part time jobs, I could save the capital gains tax on the gain, allowing them more for college. This will lower their chance of grant money, but I think we make too much anyway (combined $130,000). Could I do this to avoid paying capital gains? The stock is in my name, can my wife and I each gift $12,500 per year (or do I need to transfer some to her first)? Would she have to wait to gift it? Do the kids need to hold it an additional year to get long term capital gains?
Asked By: rick2rio - 8/15/2007
Best Answer - Chosen by Asker
The gift amount is $12,000. You can gift it to them, and you would be gifting it to them at current market value, but their basis would be your original cost basis. The only thing is, since the stock is not in your wife's name at all, she can't gift it, because she doesn't own any of it. I also don't know about adding... More
Answered By: PepsiLime - 8/15/2007
Additional Answers (2)
You could try - but you should probably get a lawyer/accountant to look it over to make sure you've got your ducks in a row. Give me some money while you are at it.
Answered By: George D - 8/15/2007
been a while and congress certainly has changed the law. But used to be you and your wife could "transfer" a total of $10,000 each year to each child Without triggering the "gift tax" clause of the estate tax section.
Answered By: piegowdealer - 8/15/2007
(89) Local Jobs Paying $19-$97 Per Hour- Available Today. Apply Now!
$21/hr Start, Avg Pay $72K/yr No Experience Needed! Get Started.
Are you the Beauty Expert in Your Group? Then Say Yes to Sell Avon!
Click. Search. Apply. Free!
Other Career Questions
What jobs are there in the business field that are night jobs? Places and job titles please. Im have a BA in Business Admin and looking for a night job, already have a morning/day job.
Enumerate these jobs Say, patent application writting. patent application writing. In a company, what jobs are needed to keep confidential?
Content is not owned or controlled by Monster. Any content concerns should be addressed with Yahoo!
Yahoo! Does not evaluate or guarantee the accuracy of any Yahoo! Answers content. Yahoo! Disclaimer.
Best-Paying Work-from-Home Jobs
It’s easier than ever to work from home. Of course, not every job is a mobile job, and some companies aren’t interested in having their employees work from home.
2013 Marketing Jobs Outlook
The US may be facing another year of anemic hiring overall, but that won't be the case in the high-orbit world of multichannel, digital media marketing.
2013 Engineering Jobs Outlook
Engineers will find job opportunities in select disciplines in 2013, with candidates who are all-around, client-oriented businesspeople in demand.
Best-Paying Jobs by Major
What could you earn with a particular four-year degree? Find out by checking out this list of the top-paying jobs for 20 of the most common majors.
Eight High-Paying, Secure Jobs
Want to earn a good salary and enjoy a measure of job security as well? Check out these well-paying jobs on tap for fast growth in the coming years.