Message Font: Serif | Sans-Serif
No. of Recommendations: 0
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.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.