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Tax consequences for you:
Tax consequences for your son:
Tax consequences for you:
Tax consequences for your son:
Thanks much for your response @rjs .
The rules for kiddie tax do not apply in my son's case.
I acquired the stock through company ESPP plan. What are the complications here ? I assume the cost-basis for son is my purchase price ??
check with the administrator of the plan. the plan may not allow a non-employee to own the stock. even if it's allowed it could be a disqualifying disposition for you.
your son needs the following information - your original cost basis and the fair market value (FMV) of the stock at the time you gave the stock - due to special rules for reporting gain/loss on sale of gifted items.
see these links
https://springwaterwealth.com/avoiding-the-double-tax-trap-with-an-employee-stock-purchase-plan/
https://wcginc.com/espp-stock-cost-basis/
as you will learn your cost basis may be more than what you paid because ordinary income was included on your w-2.
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