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> How is the 10,000 limit arrived at? Is it calculated at the origninal price at which we bought the stock, or the price of the stock on the day that it is transferred into their accounts?

Gifts are valued at the time of the gifting. Fair market value on day of transfer must be at or under 10,000 to avoid "tax complications".

Those shares DO retain their original cost-basis and holding period though.

- D
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