Re: A Clarification: Gifting Stock to Friends, Fam
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Posted On: 01/11/2021 11:51:53 AM
Re: A Clarification: Gifting Stock to Friends, Family and Charities:
In a previous post I suggested gifting stock to friends, family, and charities to avoid the giver paying capital gains tax. That is still the case. However, it turns out that the value of the gift (for 2021 gift tax purposes) is not the giver's cost basis of the stock but the market value of the stock at the time it is given as a gift (see below).
This could be a reason to give someone UNVC stock now when the PPS is low versus giving it to them after UNVC is listed on the NASDAQ. However, even if the PPS is much higher when you give someone UNVC stock you can always deduct this gift from your lifetime estate exemption and pay no gift taxes.
How Do You Value a Gift of Stock?
https://www.schwab.com/resource-center/insigh...at%20rules.
In a previous post I suggested gifting stock to friends, family, and charities to avoid the giver paying capital gains tax. That is still the case. However, it turns out that the value of the gift (for 2021 gift tax purposes) is not the giver's cost basis of the stock but the market value of the stock at the time it is given as a gift (see below).
This could be a reason to give someone UNVC stock now when the PPS is low versus giving it to them after UNVC is listed on the NASDAQ. However, even if the PPS is much higher when you give someone UNVC stock you can always deduct this gift from your lifetime estate exemption and pay no gift taxes.
Quote:
Valuing stock for gift tax purposes
No, the value of a gift of stock for gift tax liability is NOT the donor's cost basis, but rather the fair market value of the stock at the time the gift is given. So let's say you purchased 100 shares of XYZ stock at $50 a share. Your cost basis is $5,000. Now the stock is $80 a share and you give it as a gift. The value of your gift for gift tax purposes is $8,000.
How Do You Value a Gift of Stock?
https://www.schwab.com/resource-center/insigh...at%20rules.
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