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Last year we gifted to my son some stocks we had been grooming for him for years. Market value close to $20K. The transfer was done in three pieces, around $4K in cash, and the rest in two separate transfers of securities, account to account within Fidelity. Looking at the cost basis, or even the market value, both totals are well under the annual exception for me and DW, which I believe would be $28K.

My understanding was that, that since the gift is under the 28K annual gift exception limit, neither we or my son had to declare anything. But recently DW was told by someone that we had to declare it, so my son did not have to pay taxes on it. I have been looking at IRS form instructions but found nothing specific to that effect. Most references are related to the donor's end. Nothing about the recipient.

I will appreciate any words of wisdom on the subject

Tony
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