Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Hello, I have a somewhat interesting situation.

I own about 200 shares of AXF, which, due to a merger, is providing a tender offer, the deadline of which is December 22 this year, and which has capital gains tax implications no matter what.

However, I rolled my sizable 401k into a Roth IRA this year, and am too close to the MAGI limit to be able to realize the gains. I also got a very large raise late this year, so it's doubtful I'll ever be able to roll it over in a future year, so I want to do it this year.

So, what I'm thinking of doing is gifting the 200 shares to my fiancee, who can then sell them immediately and pay the long-term capital gains tax on it. She's not in a lower bracket, but at least she doesn't need to stay under any limit. It's a little over $10,000, but I can just sell enough to get it under that and stay beneath the IRA limit.

From what I've read at the IRS site and on the FAQs here, this should be fine. Anyone know if I'm missing anything, or if I have a better alternative? Thanks in advance!
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.
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.