Re: Gift taxes - parents give 800 shares to adult children?

From: Rich Carreiro <rlcarr@animato.pn.com>
Subject: Re: Gift taxes - parents give 800 shares to adult children?
Date: Wed, 13 May 1998 18:48:42 -0400

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[Disclaimer: this is my opinion, not advice.  I am not a professional.]

>Is there a state or federal tab liability if parents give a large block
>(800 shares) of stock to an adult child?

It depends on the price of the stock.  To the extent that you give
gifts of more than $10,000 in a single year to a single person
(doesn't matter if that person is related to you or not), there will
be a gift tax liability on the excess.  A person and their spouse can
thus together give $20,000 per year to a single person.  However, you
must first start to use up the unified gift/estate tax credit of $202,500
before you actually pay any gift tax.

There is no tax liability on the *recipient* regardless of the size
of the gift.

Spouses can make unlimited gifts to each other with no gift tax liability
at all.

Rich Carreiro
rlcarr@animato.pn.com
P5-100/RedHat Linux 4.1

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