USE APPRECIATED STOCK TO FUND OBLIGATIONS

You might want to consider gifting stock that has appreciated in value to your children (over age 23) to help pay for their education or to purchase a home, or to parents to help pay for their eldercare. By doing this, you shift the tax liability for the gain from selling the stock to the child or parent, who with proper planning, may pay a lower tax on the profits than you would. In 2013 through 2017, each taxpayer can gift up to $14,000.

This strategy cannot be used for children under the age of 19 or by children who are under the age of 24 and are full-time students.

Everyone’s situation is different and what works for one may not work for another. Please call this office for information pertaining to your particular circumstances.