What are the tax implications of giving stock?

What are the tax implications of giving stock to someone?

When you give stock as a gift, you generally don't have to pay taxes on it. However, the recipient may have to pay capital gains tax when they sell it.

Are there any limits on how much stock I can give without incurring taxes?

Yes, for 2023, you can give up to $17,000 per person per year without triggering gift tax. Amounts above that may require filing a gift tax return.

What if I give stock to my spouse?

Gifts to your spouse are generally exempt from gift tax, regardless of the amount, as long as your spouse is a U.S. citizen.

How does the recipient's tax basis work for the gifted stock?

The recipient's tax basis is typically the same as your basis in the stock, which means they inherit your cost basis for capital gains purposes.