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Author: chk999 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120801  
Subject: Who pays the tax on this? Date: 12/9/2013 1:27 PM
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Question about transferring securities. The scenario is that you have highly appreciated stocks in a taxable account. The stocks have been held for years and would have long term capital gains if sold. You transfer some (less than the gift tax maximums) to a relative, into their taxable account. Who pays the long term capital gains tax? Are there any strange gotchas here? What basis does the recipient have for value of the shares?

We're thinking about giving some shares to nieces & nephews, but want to understand the implications before we do anything.
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