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I had a question in regards to gifts of stock. If I were to gift stock to my mother, besides providing the brokerage with my cost and tax basis, is there anything else I need to do such as have Schwab transfer the certificates over from street name over to my name or my mothers name? I am 29 years old, earn 22,000/yr at my current job. I plan on gifting to my mother $9,000 to $10,000 max. So I guess I would be in the 28% tax bracket right? My mother is retired and doesn't have any income coming in except for her social security. She is 63, from what I understand she is in a lower tax bracket say 15%. So if I were to gift the stock over to her and she subsequently sold at a later date for her own use, the money would be taxed at a lower rate as opposed to my rate correct?

Thanks for any info or additional insight.

You are correct - gift will transfer your cost basis to her. If she is in the 15% bracket and the gain on the stock is long-term she will pay tax at 10% on the gain.

But if you are making less than 25k per year and are single - you too will be in the lower 15% bracket and the gain would be taxed at the same rate for you.

So it may be of no advantage - depends on what bracket you are in.


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