I want to transfer my 2,000 shares of stock (basis is $13) to my 15-year old son and once the stock is in his name I want to sell it and have him pay the 5% capital gains (he has no earned income) versus me keeping the stock, selling it and paying 15% capital gains. After the sale in my son's name I would then deposit the resulting cash proceeds back into my account.
Questions:
1. Is this legal to transfer the stock to my son and then sell the stock once it is in his name?
2. Am I right that he would only pay 5% capital gains?
3. Are there any gift tax issues (limits) involved?
4. Any problems with me taking back the cash proceeds from my son after the stock sale?
Any worthy advice is greatly appreciated!
Questions:
1. Is this legal to transfer the stock to my son and then sell the stock once it is in his name?
2. Am I right that he would only pay 5% capital gains?
3. Are there any gift tax issues (limits) involved?
4. Any problems with me taking back the cash proceeds from my son after the stock sale?
Any worthy advice is greatly appreciated!