"AugieDoggie" <william.fifty[at]us.army.mil> wrote:

- quote -

that would be a taxable gift subject to the gift tax rules

___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] > > -----> real address on hobokeni or hobokenx <-----

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AugieDoggie wrote:

- quote -

Basis follows the gift. i.e. after you gift it, she has your
cost basis and purchase date. She then pays the tax when she
sells. You can gift $12000 to one person with no further tax
issues or paperwork.

JOE

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AugieDoggie <william.fifty[at]us.army.mil> wrote:

- quote -

Sure; make them a gift. There's a limit how much you can
give in one years without paying gift taxes (or at least
filing a return), but it's at least $24,000 ($48,000 if
you're both married).

- quote -

Capital gains rate is fairly low, so hers might not be much
less than yours if she has other income.

Seth

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I would like to give my sister-in-law a loan to start a
business. Unfortunately, my money is tied up in mutual
funds. I want to avoid selling my mutual fund shares and
giving her cash – thus incurring capital gains on my
investment.

Is there anyway I could transfer the mutual fund shares
directly to her without incurring capital gains and thus
having to pay the associated tax?

She would be in a much better financial position to pay the
capital gains when she converts the mutual fund investments
to cash.

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