I think it's even more confusing in this case, because tax law does occasionally push the original cost basis to the later generation. I do not understand how it works, but the recipient "inherits" the original cost basis, while the donor declares the value of the gift at market price. I don't profess to understand this fully, and I wouldn't ask for advice on this here. It really needs an expert in estate planning.
David T. On Jan 25, 2023, 4:03 AM, at 4:03 AM, David Carlson <david.carlson....@gmail.com> wrote: >The US allows gifts to go untaxed within certain limits. Capital >gains >can get interesting as well. If you're not certain, talk to your >accountant. > >On Tue, Jan 24, 2023, 6:48 PM Liz Dodd <ed...@billiau.net> wrote: > >> On Wed, 25 Jan 2023 10:34:51 +1100 >> flywire <flywi...@gmail.com> wrote: >> >> > I doubt your jurisdiction is that naive. I'd expect you'd pay tax >on >> > the $25k capital gain on disposal and your son would have a $30k >> > basis price. >> >> >> I agree, you gave your son the equivalent of $30K, and you get to pay >> tax on the capital gain. >> However if your jurisdiction sees it as your son paying the capital >> gain, then you gave him $5K in your books. >> >> Liz >> _______________________________________________ >> gnucash-user mailing list >> gnucash-user@gnucash.org >> To update your subscription preferences or to unsubscribe: >> https://lists.gnucash.org/mailman/listinfo/gnucash-user >> ----- >> Please remember to CC this list on all your replies. >> You can do this by using Reply-To-List or Reply-All. >> >_______________________________________________ >gnucash-user mailing list >gnucash-user@gnucash.org >To update your subscription preferences or to unsubscribe: >https://lists.gnucash.org/mailman/listinfo/gnucash-user >----- >Please remember to CC this list on all your replies. >You can do this by using Reply-To-List or Reply-All. _______________________________________________ gnucash-user mailing list gnucash-user@gnucash.org To update your subscription preferences or to unsubscribe: https://lists.gnucash.org/mailman/listinfo/gnucash-user ----- Please remember to CC this list on all your replies. You can do this by using Reply-To-List or Reply-All.
