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Posted by Arthur Kamlet on October 22, 2006, 5:36 am
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> I have shares which have gone up in value. I wish to gift
> them to my son. There will be no gift tax since the value
> is less than $11K.
>
> If he sells the shares, what will be his cost basis?
His cost basis and acquisition date for appreciated stock
are the same as yours.
If he is under age 18, however, he may have to pay the
Kiddie tax, which increases his tax rates on some income to
be the same as yours.
Thus it is possible that even if he sells his gifted stock,
the tax rate he pays is the same as you would have paid.
__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
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