newtoseattle
Recycles dryer sheets
Thought I would double check my thinking on gifting some stocks to my partner (have to admit, I'm not really looking for feedback on the idea of gifting money, more the details... having said that, to satisfy curiosity - my reasons for gifting are to help us be a bit more "partners" financially (I am very high income, she is quite low); it will not affect my ability to ER (my expenses are much higher as a "couple"))
I am in a high tax bracket and in index stocks. They will be in less than 15% tax bracket.
My plan is to simply gift some of my vanguard total stock fund
International fund has overall lost money - plan is to change cost basis to "specific dates" and gift the dates that have a capital gain. Then I was going to sell some of the funds that that have a capital loss (so I can tax harvest loss) and gift "cash". We are not legally married, etc, but just to avoid any hint of trying to "cheat" - I was going to ask that they not rebuy the international fund for 30 days (to avoid any wash sale speculation).
I had thought about worrying about timing with dividends in December, but think overall it won't really make a huge difference? I think my preference is to just make sure its all done this year so its only one year of needing a CPA to help with gift tax form 709...
On the note of the 709 gift tax - I'm thinking only "risk" is if relationship ends then future partner could be affected by reaching "limit" (but don't expect to reach 5.34million limit regardless). No kids or need for inheritance beyond any partner. Other risk would be if they change limit in future (i.e. decrease it) - have they ever retroactively decreased limit?
Anything I'm missing? (I'm one of those - knows just enough to get in trouble - people)
Thank you.
(yes, I know I should consult my tax professional - but given I use turbo tax I don't have one. Do plan to use one for 709 form though - I've screwed it up in the past when retitling house)
I am in a high tax bracket and in index stocks. They will be in less than 15% tax bracket.
My plan is to simply gift some of my vanguard total stock fund
International fund has overall lost money - plan is to change cost basis to "specific dates" and gift the dates that have a capital gain. Then I was going to sell some of the funds that that have a capital loss (so I can tax harvest loss) and gift "cash". We are not legally married, etc, but just to avoid any hint of trying to "cheat" - I was going to ask that they not rebuy the international fund for 30 days (to avoid any wash sale speculation).
I had thought about worrying about timing with dividends in December, but think overall it won't really make a huge difference? I think my preference is to just make sure its all done this year so its only one year of needing a CPA to help with gift tax form 709...
On the note of the 709 gift tax - I'm thinking only "risk" is if relationship ends then future partner could be affected by reaching "limit" (but don't expect to reach 5.34million limit regardless). No kids or need for inheritance beyond any partner. Other risk would be if they change limit in future (i.e. decrease it) - have they ever retroactively decreased limit?
Anything I'm missing? (I'm one of those - knows just enough to get in trouble - people)
Thank you.
(yes, I know I should consult my tax professional - but given I use turbo tax I don't have one. Do plan to use one for 709 form though - I've screwed it up in the past when retitling house)