Do I have to pay capital gains tax on a gift of stock to a family member

[rcrystal67]

Do I have to pay a capital gains tax on a gift of "stock" to a family member?

[Opus 17]

No, but...

When the recipient sells the stock, they will pay capital gains based on your cost basis (your purchase price, with adjustments for splits and so on).  So you will be greatly helping the recipient if you give them documents to prove your basis. 

[tagteam]

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Do I have to pay a capital gains tax on a gift of "stock" to a family member?

@Opus 17 is 100% correct but why did you put the word "stock" in quotes, @rcrystal67?

If you transferred the shares to the family member then you would not have to report that transaction on your individual income tax return. 

However, if you sold the stock and then gave the proceeds to the family member, there would be a different result.

Also (and perhaps unlikely) if the gift of the proceeds or value of the stock transferred exceeded $18,000 for 2024, you would have to file a gift tax return (Form 709).