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Author: wish88 Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 123478  
Subject: Gift of Stock for H1B Date: 8/2/2000 12:28 PM
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After I read the TMF Taxes article, I have better understanding of taxes. Thanks a lot TMF Taxes. Recently, you posted the article about gift of stock. I have question about that.

Here is my situation: I'm working in US using H1-B (temporary worker) visa with 28% tax bracket. I plan to gift stock to my parents who are not US citizen, which worthed < $10,000. I have hold the stock for more than a year.

According to my tax preparer, non-US citizen can own US stock, but she didn't know about the tax implication. So, if I give the stock to my parents and my parents sell it five years from now my question is:

1. Do my parents has to pay tax to Uncle Sam ? If so, how and what document should they prepare?

2. Is there any tax implication to me as the person who give the gift of stock by the time I give the stock? In other words, do I have to pay taxes for the stock that I give to my parents?

3. What kind of document should I prepare to give stock beside the transaction doc of the stock? And what kind of letter should I write?

Thank you.
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