Transfer of Stock as gift to significant other

[sard0nicpan]

What is the name of your state? Louisiana

This is the situation. I am preparing to gift to my significant other 200 shares of stock. Here are the details:

1. I received the stock as part of a bonus about 2 months ago. At the time of receipt it was valued at $4236.00/selling at $21.18 per share.

2. At the present time, the stock is valued at $3994/selling at $19.97 per share.

3. The party to which the stocks are gifted has no income, but is a legal adult.

My question is the following: Given that the gift to the other person will be their only reported source of income, I expect that it would create no tax liability for them. Am I correct?

As pertains to me, how does this affect my tax liability? The fact that at the time of transfer, its value has gone down--does this have an effect?

Also, does this go under the category of capital gains tax? Do I report the gifting, and is it deductible?

Please advise.

Thanks in advance,
SP

 

[shortbus]

Questions better asked of an accountant than a lawyer. Cheaper too.

 

[davidlanderson]

What is your cost basis for the stock? That is important. Your employer
can help you with this. It may be $4236 in which case you would be
better off selling the stock yourself and taking the loss and giving cash to your SO. Your SO could then buy any stock he/she pleases with the cash.

If you dont care about the few hundred in ST capital loss, you could just give the stock to your SO and as long as your gifts to her/him are not more than $11000 in one year there should be no additional tax implications to either you nor her/him. Note that your SO will have a tax basis in the stock at the lower of the Fair Market Value at the time of the gift or your cost basis.