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I am considering giving a stock gift to my 19 year old son and the value is about $15,000. To avoid paying gift taxes, can I use gift splitting with my wife even though the stock is held in my name only or will I have to use a portion of my unified credit?

Thanks,
Keith
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I am considering giving a stock gift to my 19 year old son and the value is about $15,000. To avoid paying gift taxes, can I use gift splitting with my wife even though the stock is held in my name only or will I have to use a portion of my unified credit?

If you'll check Form 709 or Form 709A, you'll see that the spouse may consent to having one half of the gift be considered as if given by them. It doesn't matter how the property was titled (single or jointly) because you could have first given one half to your spouse (without any gift tax consequences) who would have then given it to the ultimate donee.

See http://ftp.fedworld.gov/pub/irs-pdf/f709.pdf and http://ftp.fedworld.gov/pub/irs-pdf/i709.pdf.
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I am considering giving a stock gift to my 19 year old son and the value is about $15,000. To avoid paying gift taxes, can I use gift splitting with my wife even though the stock is held in my name only or will I have to use a portion of my unified credit?

______________________

Yes, you may use the marital consent on your annual Form 709 (US Gift Tax Return) where a spouse elects to treat all gifts as though made one-half by him/her. In fact, if the spouse has made no gifts directly and the donee exclusions exceed the split gifts, the consenting spouse will not require a gift tax return.

Depending on your age and plans to hold or sell the stock, you may want to gift cash to your son. That's another subject and don't hesitate to email if you would like to discuss.

HJ
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Another factor is if you live in a community property state. If you live in a community property state and you used community property money (any income during marriage) to purchase the stock, it is considered community property even if title is held in your name. You do not file the 709 as a split gift. Each spouse files their own 709.

Good luck

EG
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