I exercised ISO stock options (all granted 8 or more years ago). 1 year later I gifted some of these shares to my adult son. So he gets my basis (exercise price) and my status (long term). And the only tax event to him is the impact of any gains or losses(they will all be long term) if he sells some or all of the shares. And there is no 'tax event' to me as long as I stay within gifting limits.
Here is the question: Suppose that same son decides that he wants to "return" some of our gift to him? (is decision, right?) What, if any, are the tax consequences to him and/or to us if he gifts unsold shares to us later the same year?
Am I correct in thinking that, alternatively, he could always gift us cash? Up to him how he "funds" that gift.
