But a step up in cost basis is always 0% so at best you match that. Most of the time you don't. And there was no mention of any specially qualified gifting. Also This assumes the giver is going to sell in the 32% bracket, which is wrong, they should be allowing it to pass at death for the step up in cost basis.Wrong.Transferring before death locks in tax liability, transferring after death does not. Simple as that.Not necessarily.Do the in kind transfer first. Then the question will be how to clean up this mess that the advisor left. Taxes are going to be a problem. If your parents had died and left this to you then the step up in cost basis would fix that. Giving it to you now is shooting you and them in the foot.
It depends on life expectancy, tax brackets, and financial need. Giving appreciated stock can be better than giving cash.
Assume the person is in a high tax bracket and the recipient is in a low tax bracket. If the person wants to give money to the recipient (like for a house downpayment or to help with college expenses/medical bills) the person could sell the appreciated stock and give cash or give the appreciated stock to the recipient. Assume the giver is in the 32% margin bracket and the recipient is in the 12% bracket. The sale would cost 15% capital gains or more vs 0% capital gains for gifting appreciated shares.
Statistics: Posted by rogue_economist — Fri Sep 06, 2024 10:58 pm — Replies 65 — Views 1754