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rthamlin writes (in part):

Our son is planning to gift us with 100 shares he has purchased through his stock options he has received from his company.For tax purposes, is the value of the gift $150 (the price he is paying) or $8900 (the current market price)?

I reply:

One thing to check before your son completes the gift. Did he pay AMT as a result of exercising the options? If so, then gifting the shares is, from an income tax perspective, a really bad idea because the AMT credit applied to the shares' basis will be wasted. --Bob
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