Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 04-09-2012, 07:10 PM
Junior Member
 
Join Date: Apr 2012
Posts: 2
stock as a gift

My wife received a gift of just over 8,000 dollars in stock from the company owned by her Father. She turned around and immediately sold it to her brother for the same amount. Our tax preparer says because it was a family gift and under 10,000 dollars, we don't need to report it to the IRS on our tax return.

What do you folks think?



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 04-10-2012, 11:41 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
“ Our tax preparer says because it was a family gift and under 10,000 dollars, we don't need to report it to the IRS on our tax return. “---->It depends; gifting stock shares has tax implications for the giver and the recipient. If the stock has appreciated in value since it was purchased, her father, the donor, giving the gift is relieved of paying taxes on the capital gains, LTCG I guess.. On the other hand, he may have to pay a gift tax. However, as of Jan. 1, 2009, UNLESS you donate more than $13,000, including stock, to a person in a year you do not have to file a gift tax return, Form 709 with the IRS;the amount of annual gift tax exclusion for 2011 is $13K.So, the FMV of the stock, the gift, is LESS than $13K, her father doesn’t need to file Form 709.However, your wife may be subject to LTCG(as long as she keeps it for more than one year) on the LTCG as long as the selling price is higher than its original basis. In 2008–2012, the tax rate on qualified dividends and long term capital gains is 0% for those in the 10% and 15% income tax brackets. After 2012, the long-term capital gains tax rate will be 20% (10% for taxpayers in the 15% tax bracket).



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #3 (permalink)  
Old 04-10-2012, 11:43 AM
Junior Member
 
Join Date: Apr 2012
Posts: 2
Thanks!

Thanks for taking time to give me a detailed answer!



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
note receivable gift rdockins Capital Gains 1 02-22-2011 05:05 AM
Federal Gift Tax kfuchslin Estate Planning 0 02-16-2010 03:33 PM
If I receive a gift of $100K... salvo.martin Income 1 03-01-2009 10:29 PM
gift tax exclusion Rich Mort Estate Planning 0 01-04-2009 06:57 PM
Gift in family is exempt from tax? keshav Miscellaneous 2 12-27-2007 09:59 AM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.