Wow, so thorough. I still am not sure of my answer, though. I think she would get taxed at my rate, but please see my notes within your reply to verify. Also, you use 2021 below, but wouldn't it be 2022? Thank you, AGAIN! I guess I could still gift it but to get the lower tax rate benefit, I need to keep her cap gains lower than $2,200. Do you think that's right? FYI - NerdWallet just ran a story on how to gift high cap gain stocks and have the low-earning receiver not pay taxes. I sent it to my friend who is an accountant and he said it was wrong. https://www.nerdwallet.com/article/investing/gifting-stocks
1. The child had more than $2,200 of unearned income ----- YES When selling the gift, she would be getting an estimated $12k in cap gains
2. The child is required to file a tax return - She will have only the gift and cap gains. So I guess it goes to #3.
3. The child either:
a. Was under age 18 at the end of 2021 - YES:(
b. Was age 18 at the end of 2021 and didn’t have earned
income that was more than half of the child's support - what is the child's support? - NO
c. Was a full-time student at least age 19 and under age 24 at
the end of 2021 and didn’t have earned income that was more than NO
half of the child's support - NO
