I plan to gift my stocks with a long term gain of $50k to my 22 year old son who is full time student.
1) Which option below would result in less taxes? My effective tax rate is 30%.
Option a) What would the tax be if I sold them before gifting it to my son?
Option b) Considering that my son would have to pay kiddie tax, what would his tax be if he sold them right after transferring?
2) Currently, my stocks show as long term gain. Once I transfer to him, will they become short term for him? What would his taxes be if they were short term gain?
Thanks for your help in answering my question.
