Ten years ago, Joe purchased stock for $46K. Joe is in bad health. He needs to decide how to transfer the stock in the family most tax-efficiently. Its current value is and is expected to remain $6K. Options: gift the stock to his wife or gift stock to daughter. The other option is to essentially do nothing. His wife and daughter are sole beneficiaries in his will.

 Discuss the recipient’s basis of the stock in each of the three options (gift to daughter; gift to spouse; allow the stock to be inherited upon his death). Which method would you recommend? and why ?

Answer rating: 100% (QA)

When considering the tax implications of transferring stock to either the wife daughter or allowing it to be inherited upon Joes death it is important ... View the full answer