Legal Question in Wills and Trusts in New York
transfer of stocks
If someone wanted to transfer stocks to someone else, who has to pay tax on it if any at all. Can this be done or do the stocks have to be sold first. Also, how much money can someone give to someone else without paying a gift tax on it? How much per year is allowed?
2 Answers from Attorneys
Re: transfer of stocks
Gifts of stocks having a market value of $11,000 to each recipient have no tax consequence. However, the recipient of the the stock takes over your original cost so if the market value is higher and they sell the stock they pay the tax on the gain.
Re: transfer of stocks
You may make an annual gift of $10,000; meaning, if you make a gift to someone else, the gift tax does not apply to the first $10,000 you give that person each year.
Even if tax applies to your gifts, it may be eliminated by the unified credit.
I suggest you contact your accountant.
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