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contribution to UGMA account
If I contribute common stock to a UGMA account do I have to pay tax on the capital gain?
Expert Reviewed
The transfer of stock to an UGMA is a "gift", it's not a taxable event to you. It can have gift tax implications - you can read about that here: https://www.irs.gov/businesses/small-businesses-self-employed/frequently-asked-questions-on-gift-taxes - but you won't pay any gift taxes.
Do the beneficiary a favor though: tell them them your cost basis in the stock and the fair market value at the date of the gift. Both pieces of information can be highly important many years down the road when the stock is sold.
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