Q. Let's say I gifted stock valued today at $6,500 to each of my three kids. I purchased it over 10 years ago for $40 per share and gave each kid 100 shares. Are there any tax benefits? What about gift taxes?
A. Mojo is correct, but Chuck is WRONG about stepped up basis in the stocks. Their basis is the lesser of your original basis or the fair market value on the date of the gift. Stepped up basis ONLY applies to inheritances, never to gifts.
Additionally when you gift the shares you must report the transaction on Schedule D. For this reason, gifts are not the best way to transfer stocks or other assets.
Additionally when you gift the shares you must report the transaction on Schedule D. For this reason, gifts are not the best way to transfer stocks or other assets.
I was given some stock as a gift when I was a kid. How do I get rid of them?
Q. When I was a kid I got some stock as a gift. Stock has split quite a bit and now, I don't even know what I own and how many shares. I just want to get rid of it. What is the best route to take?
A. I assume you have the actual shares somewhere.
If so, you first need to find out when the original shares were issued (it is on the stock certificate). (This will be for your taxes) Then you need to find out what the share price was on the day they were issued. (You can get this from the broker when you sell them) Then you can go to any discount brokerage firm, like Scottrade, or even your bank, and ask them to sell the stock for you. They will charge you a nominal fee of $20-$50. Keep the transaction information for when you do your taxes. You will owe long term gains on it.
If so, you first need to find out when the original shares were issued (it is on the stock certificate). (This will be for your taxes) Then you need to find out what the share price was on the day they were issued. (You can get this from the broker when you sell them) Then you can go to any discount brokerage firm, like Scottrade, or even your bank, and ask them to sell the stock for you. They will charge you a nominal fee of $20-$50. Keep the transaction information for when you do your taxes. You will owe long term gains on it.
Is there a way to prove who sold my stocks over 25 years ago?
Q. I was gifted stocks and bonds as a child and my mother died when I was 10. Relatives have argued over the years about what has happened to them. Is there a way to research this?
A. It would be very difficult to obtain this information because most companies only have to keep records for about 7 years. You may want to check with your State to see if the funds were escheated. Make sure you check your mom's name because she was your guardian.
If you believe it was a large amount of money you could hire a lawyer, however, this may ruin your relationship with your family.
Good luck!
If you believe it was a large amount of money you could hire a lawyer, however, this may ruin your relationship with your family.
Good luck!
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