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peter_staples
New Member

How do i account for stock i gave to an employee on my tax return

I gave some personal stock of mine to some employees as a Christmas gift.  How do I account for that on my tax return?

2 Replies
dogongulf
Level 3

How do i account for stock i gave to an employee on my tax return

If you gave more than $15,000 in assets (the value of the stock), you need to file a gift tax return. That doesn't mean you have to pay a gift tax. It just means you need to file IRS Form 709 to disclose the gift.  This amount will count against your lifetime gift allowance, which is currently $11.18 million.  If the stock's value is less than $15,000 you don't need to report the gift.  Either way, the recipient assumes your cost basis for the stock. 


TomYoung
Level 13

How do i account for stock i gave to an employee on my tax return

"How do I account for that on my tax return?"

You don't.  I assume you give people gifts all the time - birthdays, anniversaries, wedding presents, etc. - and you don't report those on your income tax return.  Just because you gifted employees some stock doesn't change that.  In you're own records you reduce your basis for this stock - less shares means less basis - and that's it.

Tom Young


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