|
|||||||
 |
|
|
Thread Tools | Search this Thread | Display Modes |
11-07-2008, 08:48 AM
|
#1 |
|
Registered User
Join Date: Nov 2008
Posts: 2
|
Tax question for transfer of stock
My wife and I own some stock that we plan to transfer to our young grand daughter. Our basis in this stock is about $2000 and the stock is now worth about $16,000. We are not selling the stock to the grand daughter but just gifting it to her as a stock transfer.
I realize there are no gift tax issues here since the gift is less than $24,000. My question is this. What if anything do I report on my individual income tax return for 1040 form for 2008? One "friend" said that I should report that I sold the stock for $1.00 a share and then take a loss on the 1040. But I am sure this is bad advice. My initial feeling is that I just do nothing on the 1040 form since I am in effect just gifting my basis in the stock to the grand daughter. Thanks in advance for your thoughts and comments. cebceb |
|
|
|
11-07-2008, 08:54 AM
|
#2 |
|
Harold Hecuba Productions
Join Date: Sep 2004
Location: New Berlin, Illinois
Posts: 934
|
No reporting is necessary. Your granddaughter will continue with your original basis in the stock.
__________________
jb IRS CIRCULAR 230 NOTICE: To ensure compliance with requirements imposed by the IRS, we inform you that any U.S. tax advice contained in this communication (or in any attachment) is not intended or written to be used, and cannot be used, for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed in this communication (or in any attachment). |
|
|
|
|
11-07-2008, 12:40 PM
|
#3 | |
|
Registered User
Join Date: Mar 2004
Location: New York
Posts: 1,351
|
Quote:
A stock is easily valued with a share price. Since the share price is more than $1, anything above that amount is simply considered a gift by the IRS. A sale must be recorded at fair market price to recognize a loss. |
|
|
|
|
|
11-12-2008, 07:01 PM
|
#4 |
|
Registered User
Join Date: Nov 2008
Posts: 2
|
Thanks for the advice. I mailed the transfer forms today to transfer the stock to my granddaughter. She will then assume my basis in the stock. I trust that she will see much growth in the value of this stock over the coming years.
Thanks, cebceb |
|
|
|
|
«
Previous Thread
|
Next Thread
»
| Thread Tools | Search this Thread |
| Display Modes | |
Linear Mode
|
|
Similar Threads
|
||||
| Thread | Thread Starter | Forum | Replies | Last Post |
| Bank stock question from newbie | ncsu | STOCKS | 1 | 06-19-2008 09:51 AM |
| another stock picking question | patrullero2 | GETTING STARTED | 1 | 11-30-2006 12:32 PM |
| Newbie stock certificate/transfer question | BigLoser | STOCKS | 0 | 06-09-2006 02:34 PM |
| Question about selling stock | Robbnva | STOCKS | 1 | 05-27-2005 12:24 AM |
| stock question | GDBLO | STOCKS | 0 | 12-07-2004 03:49 PM |
SPONSORED LINKS
Powered by: vBulletin Version 3.0.1
Copyright ©2000 - 2009, Jelsoft Enterprises Ltd.
Copyright ©2000 - 2009, Jelsoft Enterprises Ltd.