Posts Tagged ‘college education’
Can I transfer appreciated stock to a minor child with no income, sell it, then pay taxes at their rate?
July 28th, 2010
I have appreciated company stock that I have held over one year. I purchased it with the intention of using it for my childrens (age15 and 16) college education. I would like to gift it to them, then they could sell it. Since capital gains tax goes to 0% in 2008 for low income people, and at best they will have part time jobs, I could save the capital gains tax on the gain, allowing them more for college. This will lower their chance of grant money, but I think we make too much anyway (combined 0,000).
Could I do this to avoid paying capital gains? The stock is in my name, can my wife and I each gift ,500 per year (or do I need to transfer some to her first)? Would she have to wait to gift it? Do the kids need to hold it an additional year to get long term capital gains?
Mail this post
Posted in 
Tags: 
