Ask Your Tax Question. Tax Experts Answer You ASAP.

(Not a Tax Question?)

Was gift tax due in the case described be

Sent to Tax Experts October 16 10:21 AM

In March, 2000, a man gave 1000 shares of stock to each of his children (3000 shares total). His basis was $15/share and the stock was worth $40/share at the time of the gift. If he properly completed form 709 and reported all of this properly, would he have paid gift tax or would this have fallen under his $1 million lifetime max? His income was roughly $100,000 that year, he had no other unusual transactions, and he had never given any gift to anyone over the annual max of $10,000/person.

 

Optional Information:
monroe, Connecticut

Already Tried:
web searches on my own

Customer (name blocked for privacy)
Status:  Closed   Value: $15
Answer
October 16 10:23 AM (1 minute and 53 seconds later)
         
ACCEPTEDCheck Mark

If he had property completed form 709 and reported all of this properly, he would have falledn under his $1 mn. lifetime max exclusion(presuming he has not used it up already) and will not owe any gift tax.

Your annual income has no impact on the gift tax liability.

Let me know if you have any question. Bonus and Feedback will be highly appreciated!!!

 

renu@yashcon.com

 

Please note: This advice is provided with the understanding that all the relevant facts have been provided by you. Any change in facts might affect the advice given and hence may not be relied on in such cases.

 

RD -- Certified Public Accountant (CPA) -- 99% Positive Feedback on 4729 Tax Accepts
CPA, MBA, Over 10 yrs of experience in tax planning and business consulting..
Reply
October 16 10:33 AM (10 minutes and 21 seconds later)
         
Reply to Renu V's Post: Thanks. That's what I had tentatively concluded, but never saw it stated in a clear-cut way.
Customer (name blocked for privacy)
Think you can answer this question?
Login or Become an Expert

Related Answers

 

DISCLAIMER: You acknowledge that any information you may obtain from individuals you contact through use of the JustAnswer service comes from those individuals, not from JustAnswer, and that JustAnswer is not in any way responsible for any of the information these third parties may supply. The site and services are provided "as is" with no warranty and no representations are made regarding the qualification of an Expert. Responses and comments on JustAnswer are for general information and are not intended to substitute for informed professional advice (such as medical, legal, investment or accounting) and do not establish a professional-client relationship. JustAnswer is not intended or designed to address EMERGENCY QUESTIONS which should be directed immediately by telephone or in-person to qualified professionals. Please carefully read the Terms of Service.

JustAnswer > Income Tax