Reply To: taxes on transfer of stock to children for gifting

Home Fairmark Forum Retirement Savings and Benefits taxes on transfer of stock to children for gifting Reply To: taxes on transfer of stock to children for gifting

#7250
Alan S.
Participant

Assuming the shares are valued at equal or more than the parent’s adjusted basis at the time of transfer, the children will use the parent’s basis for reporting the sale of any shares. There is no tax consequence to the parents including gift tax since the donation is within the annual exclusion amount.

In other words, if the cost basis is low, the children might owe considerable LT cap gains. The holding period for the shares includes the time owned by parents.