Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
I own 12,000 shares of depreciated stock which will probably appreciate again in six to nine months time. My basis is just under $4.00. The current market bid/ask is in a tight range about $1.50. I would like to gift 5500 shares to my 24 year-old Canadian nephew and 6500 shares to my 40 year-old British cousin (who are both minority shareholders in and officers of a small investment company located in one of the Euro countries - I am not). What options and possible consequences do I have in making these gifts without exceeding the $10,000 gift limit per person(/entity?) per year? If necessary, they could temporarily arrange for the availability of cash equivalent to the current market value. What are the US tax consequences for them?

P.S. I looked under TMF Taxes FAQ but didn't find what I needed.
Print the post  

Announcements

Disclaimer:
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.