![]() ![]() And this figure is not based on the value you purchased the stock at before gifting, but rather the fair market value at the time of gifting. If the amount is over either of these thresholds, the donor is typically responsible for the tax penalty. The lifetime gift limit for one person to give is $11.7 million. Gift taxes: According to the IRS, the maximum gift amount you can receive per year without incurring any taxes is $15,000 for single-filers, and $30,000 for married couples.Here are a few tax implications to consider: Stocks are considered property, and they are subject to taxes. This is a great way to get someone started with investing that may not already be saving for the future. If they don't have a brokerage account currently open you could use a platform like Stockpile to give them a digital gift card to redeem for an individual stock like Netflix or Tesla, or to purchase stocks of their choice. Specific transfer policies vary, so check with your brokerage about what is needed to initiate a stock transfer. From there, you can input their information into your brokerage account to have the securities transferred to their account. All you will need is the recipient's basic personal information and details of their brokerage account. If your gift recipient is an adult, the process is a bit simpler. Virtual transfers from one brokerage to another And because you are purchasing the shares at a discount, your gift recipient may have a head start on earning solid returns. ![]() This may require some forward planning on your end, along with consulting a tax professional, but this could be a fun way to make your gift recipient "your boss," as they would own shares of the company you work for. Each ESPP program works differently, so be sure to consult your human resources department for more information. This works by employees electing to have money taken out each paycheck, and then they are awarded stocks during specific periods throughout the year. Typically, employees of publicly traded companies are given a discount on the retail price investors pay. If you work for a company with a employee stock purchase program (ESPP), you're able to immediately gift those shares to someone else, while also earning a valuable tax deduction for yourself. ![]() Consider your own company's stock options Keep in mind that there is no return policy on this gift - once it's gifted, it's now their property. Once the account is set up, the stock can be directly transferred from one account to another. ![]()
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