Stocks can be given to a recipient as a gift whereby the recipient benefits from any gains in the stock's price. Giving the gift of a stock can also provide benefits for the giver, particularly if the stock has appreciated in value since the giver can avoid paying taxes on those earnings or gains.
Yes, you can gift stock directly
You can transfer it directly from one brokerage account to another. You don't mention your daughter's age, but even if she were a minor, you could open a custodial account for her and make the stock transfer.
You can start the process online in your own brokerage account by opting to gift shares or securities you own; if you can't find that option, contact your brokerage firm directly. If you want to gift a stock you don't already own, you'll have to purchase it in your account, then transfer it to the recipient.
Tax Implications of Gifting Stock
At the time the stock is gifted to a family member, there are no tax implications.
Well, the answer is yes, you can, but unfortunately a transfer of shares to children would be classed as a disposal for capital gains tax purposes, and the disposal proceeds would be deemed to be the market value of the shares.
By gifting appreciated stock, you avoid any long-term capital gains tax liability that you would otherwise owe in the future. Any capital gain liability does transfer to the recipient of your gift – there is no “step-up” in cost basis when gifting stock; this occurs only at death.
Quite often, a shareholder (who may also be a founder) wishes to gift his or her shares to another shareholder (who may also be a co-founder), or to a family member of his. The good news is that there is no Capital Gains Tax on gifts of assets (including shares) you give to your spouse or civil partner.
A person who gives his signature, name and address as approval for transfer must see the transferor and the transferee sign the share/debentures transfer deed in person. The relevant share/debenture certificate or allotment letter with the transfer deed must be attached and sent to the company.
Buying Stocks for Your Kids
Minors can't buy stocks, so you will have to do it on their behalf. You have two options when it comes opening an account for your children: ... Custodial Account: The child owns the count, even though you are in control of it. Gains are taxed at the child's tax rate.
You cannot trade securities for others without becoming licensed as an investment professional. Investment professionals must be registered with the Securities and Exchange Commission or have a federal license. There are few exceptions to this rule.
Letter of instruction for sending gifts within Fidelity
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