Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 2
11K can be given to any person annually without any tax reporting. The value is market value and not the cost basis.

If you are married that means that both you and your wife could transfer 11K to the child.

A gift retains its cost basis and original purchase date. If you give stock make certain that you give the documents for the cost basis. It makes her taxes alot easier. When the stock is sold the capital gains will be taxed at her tax rate. If she is unemployed at the time of sale her tax rate is probably very low.

If you exceed the $11K limit, then you need to report the gift. The amount would probably not be immediately taxed. It reduces the amount of your estate that is free from estate tax.

Currently, inheriting appreciated stock is better for taxes (providing no estate tax is due). The stock receives a cost basis based on its value on the date of death. In the future, during the year that estate tax is eliminated, inherited asset may retain their cost basis. I do not have a complete understanding of the pending changes. It sounds like you are giving her a gift because of unemployment but if you are doing more elaborate estate planning professional advise by someone who knows your state laws is good.


Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.