I have $110,000 in stocks amount to around $110,000. I would like to give my 2 sons as gift in 2017. How can I avoid gift in excess of $56,000.

[TomYoung · Accepted solution]

The annual gift tax exclusion is $14,000 in 2017.  If you are married and your sons are married you and your spouse could give each couple gifts totally $56,000.  Between the two sons (and their spouses) that exceeds your $110,000.

Of course if you're not married and/or your sons are not married you are limited to $14,000 for each gift and would have to report the excess but the estate and gift tax exemption is $5.49 million per individual,so you shouldn't pay any tax.

Tom Young

[Texas Roger]

@TomYoung  For my information, is the value of the stocks based on the stock price on the date of the gift or is it the capital gains amount that would have resulted had the stock been sold on the date of the gift?

[tagteam]

@Texas Roger

<a rel="nofollow" target="_blank" href="https://www.law.cornell.edu/uscode/text/26/2512">https://www.law.cornell.edu/uscode/text/26/2512</a>

[TomYoung]

And, just to close the loop....

This is regarding a discussion about valuing stock for GIFT TAX.  

But in the hands of the recipient the donors basis carries over for INCOME TAX.