Hi gang...At the beginning of the year, I'm going to be gifted $10,000 in JNJ stock. My daughter just turned 4, and I'd like to take probably half of this and set it aside for her education. I was thinking of putting it into a S&P 500 Vanguard fund and just let it sit for 14 years. Is there a "smart" way to do this, in order to minimize tax liabilities? Thanks!
Gene,If you want the gift to go to your daughter, then why not let it stay in JNJ versus selling the stock which creates a taxable event now, and another when you sell the new investment for tuition?Seems to me the lowest tax option at this time would be to keep the JNJ and then sell it later for tuition. JNJ is a solid company that should continue to grow.Jenn
Thanks for the imput. Since this stock is actually being gifted to me, if I decide to take half of it out, is there a tax advantage to creating an account with the stock in her name?
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