I and my wife want to gift $16000 each to my grandson for medical school costs If we give him stock we have owned for 30 years we can avoid high capital gains tax.
If he sells the stock for his tuition, what is his tax liability? Is ownership based on the date he receives it? or based on our date of purchase?
You'll need to sign in or create an account to connect with an expert.
Hello fkopilak,
Hope you're all doing great! How exciting that your grandson is going to college and you are helping him out!! That's just awesome.
So if you are giving him stock that is appreciated in value and he then sells it, your cost basis and holding period will be transferred to him. If your grandson is in a lower tax bracket than you then he will owe less tax or maybe no tax (if it is long-term) as compared to if you sold it under your name and you are in a higher tax bracket.
if the holding period will be transferred to him, and he sells it immediately, is it long term capital gains for him?
Hello fkopilak,
Hope you're all doing great! How exciting that your grandson is going to college and you are helping him out!! That's just awesome.
So if you are giving him stock that is appreciated in value and he then sells it, your cost basis and holding period will be transferred to him. If your grandson is in a lower tax bracket than you then he will owe less tax or maybe no tax (if it is long-term) as compared to if you sold it under your name and you are in a higher tax bracket.
if the holding period will be transferred to him, and he sells it immediately, is it long term capital gains for him?
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Wt24
New Member
lyihjl-hotmail-c
New Member
jenren
New Member
Ark808
Level 1
Dabug-Taxes
Level 2
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.