Yes, I gift ~$7k of appreciated stock/fund shares to my daughters each year... My child (23) .. 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
A. Does that really mean that our (combined) tax liability will be zero..?
B. .. Are the proceeds from the sale of stock added to his income? I.e., he .. 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?
The daughter with the $100k income just keeps the shares.
The daughter with the low[er] income sells her shares and pays no taxes. She reinvests the proceeds into a Roth IRA.
A. Yes.
B. Yes.
Don't do the re-gifting back to you. That is tax fraud.
Statistics: Posted by doobiedoo — Sun Jun 30, 2024 12:52 am — Replies 25 — Views 1637