Small Business Resources, Business Advice and Forms from AllBusiness.com

The Indianapolis Star Rhoda Israelov Column.

By Rhoda Israelov, The Indianapolis Star Knight Ridder/Tribune Business News

Nov. 7--GIFTING STOCK BEATS GIVING THE PROCEEDS: QUESTION: If I want to make gifts of stock to grandchildren, how would the tax work, and is there any age limit? I figure that the grandchildren's tax bracket has to be lower than mine, so if I sell the stock there will be more tax than if they sell it. Is my thinking correct?

ANSWER: First of all, you are correct that if you gift the stock rather than selling it, it won't be you paying the capital gains tax if the stock is sold

In addition, make sure to read these premium articles also available with your free trial:

T T T
art_print Printart_email Email 16x16-digg-guy  Digg It delicious-small  del.icio.us

Related Resources

Free AllBusiness Articles

  • The effect of the IRS Restructuring and Reform Act of 1998 on federal income tax controversies.
    • On July 22, 1998, President Clinton signed the IRS Restructuring and Reform Act of 1998 (the Act).(1)(*) The Act represents the culmination of years of focus and debate on taxpayer rights, privilege issues, and overall improvements to the administration of federal tax law. The Act contains several administrative and procedural ......
  • Stock, bond and mutual fund ownership tax problems.
    • Individual investors fleeing the CD market and heading into the more esoteric world of stocks and mutual funds may be in for some tax headaches. These headaches are relatively common and the investors' tax advisers should be prepared to help with some of them (since the investors themselves will probably ......
  • Long Islanders On the Move: June 13, 2008
    • Accounting Mark A. Plostock was named one of the Top 50 IRS Representation Practitioners by CPA Magazine. He is a tax manager at Israeloff, Trattner & Co., where he is responsible for tax compliance and planning. Banking Suffolk County National Bank has hired Geralyn Harper as assistant vice president and ......
  • Tools of the trade.
    • There are five versions of the ATX Tax Preparation Software from CCH designed for professionals in small-sized firms and those with solo practices. All are based on the same powerful, easy-to-use program. The basic 1040 program includes all federal individual forms and schedules and forms for up to three states....
  • tools of the trade
    • There are five versions of the ATX Tax Preparation Software from CCH designed for professionals in small-sized firms and those with solo practices. All are based on the same powerful, easy-to-use program. The basic 1040 program includes all federal individual forms and schedules and forms for up to three states....
  • Tax Strategies, Year-End 2007
    • IMAGE ILLUSTRATION 1 "The avoidance of taxes is the only intellectual pursuit that carries any reward." -John Maynard Keynes Overview Tax planning primarily concerns the timing and the method by which income is reported and deductions and credits are claimed. The basic strategy for all year-end tax plans is to ......
  • Early Retirement: IRS-Approved Options for Early Withdrawals
    • The IRS is relentless and unforgiving of mistakes when it comes to early withdrawals from pension plans or IRAs. Nevertheless, the applicable regulations provide options that may be employed to meet the needs of early retirees. For tax preparers, the key to maximizing these provisions is careful compliance with the ......
Related Topics
Tools

Sponsored Links

Site Map | Contact Us | FAQs | About Us | Media Kit | Reprints | RSS Directory | Sign Up for Free Newsletters | Disclosure Policy

Copyright © 1999 - 2008 AllBusiness.com, Inc. All rights reserved.
No part of this content or the data or information included therein may be reproduced,
republished or redistributed without the prior written consent of AllBusiness.com.
Use of this site is governed by our Copyright and Intellectual Property Policy, Terms of Use Agreement and Privacy Policy.

Get In-Depth Company Information from Hoover's | Buy a D&B Credit Report | What is in Your Company's D&B Credit Report? | Article Archives
Online Business Database | Online Business Information | Email Marketing Lists | Sales and Marketing Solutions | Business Mailing Lists
Information and opinions on AllBusiness.com solely represent the thoughts and opinions of the authors and are not endorsed by, or reflect the beliefs of,
AllBusiness.com, its parent company D&B, and its affiliates.