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Macdude357
October 9, 2023
Solved

Gifting stock

  • October 9, 2023
  • 2 replies
  • 0 views

If I gift some stock to my adult son, I realize that the gift is irrevocable, however, is there any reason my son could choose to gift back the proceeds so long as they are within the gift limits?

Best answer by Mike9241

yes the IRS could choose to ignore the gift and tax you on the sale because gifting the money back would look like the principal purpose was improper and possibly illegal tax avoidance not a true gift.  In other words in the end you would be in the same position, ignoring income taxes, as if you sold the stock yourself. 

2 replies

X
xmasbaby0
Employee
October 9, 2023

What are you trying to accomplish?

**Disclaimer: Every effort has been made to offer the most correct information possible. The poster disclaims any legal responsibility for the accuracy of the information that is contained in this post.**
M
Macdude357Author
October 9, 2023

He is going to school in Texas and needs medical insurance. I live in California and am on ACA so he doesn’t get coverage in Texas.  In order to qualify for ACA in Texas his income must be at least $13700.  He doesn’t make that much so I was going to gift some stock that has appreciated so when he sells it he will have a capital gain that counts towards ACA income.  

M
Mike9241Answer
October 9, 2023

yes the IRS could choose to ignore the gift and tax you on the sale because gifting the money back would look like the principal purpose was improper and possibly illegal tax avoidance not a true gift.  In other words in the end you would be in the same position, ignoring income taxes, as if you sold the stock yourself. 

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