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This doesn't sound like a gift. It sounds like a sale. I don't think it would qualify for a gift exclusion.

As for your not paying taxes on a gift, just what do you mean? You won't get a charitable contribution deduction if you give to an individual. You will avoid paying capital gains taxes on appreciated stock if you give it away instead of selling it. However, you must report your basis to the recipient, and when they sell the stock, they get stuck with the tax on your gain. This can still be advantageous, if they're in a lower tax bracket, or if they're a charity, and don't pay taxes.

The recipient does not have to report the gift itself as income, but they can be liable for capital gains taxes.

Hope this helps.
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