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Personal Finance (Not Investing) • Gifting stock to spouse for monthly expense -- legal way to avoid capital gains?

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Let's say I have one share of stock that has unrealized capital gain of $100. It's worth $200 right now. I gift it to my wife. She sells it at $200.

She uses this $200 for our monthly expense.

In this case, neither of us would need to pay capital gains.
Why? Does she have low income (and file separately)? The (unrealized) capital gain is transferred to her along with the gift (see IRS Publication 551), and it sure looks like she has realized it.

Statistics: Posted by increment — Sat Oct 12, 2024 11:25 pm — Replies 1 — Views 132



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