B
braveheartsgirl
Guest
I would like to avoid the capital gains taxes when cashing in a small number of stocks by "gifting" the stock to my 14 yr. old child prior to selling them. The total value of the sold stock would be under $10,000. I understand I can "gift" these stocks with no gift tax liability to myself, but what of my child's tax liability? The child has no other income to report. Will he/she have to file a tax return for this calendar year? Will he/she be required to pay any taxes on this income from the sale of the stock? Can I then use these monies to purchase new stock? Can the new stock purchase be in my name? My state of residency is Indiana.