You can gift the maximum in shares to your kids every year, tax free, before the shares appreciate. That’s why rich people send $14,000 gifts to all their kids and grandkids every year.[/quote]
Slightly more nuanced: You typically don’t have to start paying taxes on gifts you give until after you’ve already given out about $5.5 million.
The $14,000 figure is the amount you can give someone in one year without notifying the IRS of the gift — meaning that $14,000 isn’t counted against the $5.5 million lifetime maximum exemption. And you can give a $14,000 gift each year to as many people as you want and still not report it.
If you’re married, you can give $14,000 to someone and your spouse can give another $14,000 to the same person that year — still no reporting. It can be from the same account, even — just different people signing the checks.
But if you don’t care about having to to submit the IRS form or you have a mere $5MM to give, you could give it all to me tomorrow and still not pay taxes. PM for account and routing numbers. 🙂
