I'm a little confused about gifting as in some ways it seems like a major tax loophole but maybe only because of how I would like to apply it. The stocks/mutual funds in question are in a taxable account.
My understanding is that
1. I can gift stock to anyone I choose.
2. The only tax consequence to me is that I need to declare the gift and it counts towards my lifetime gifting limit (which I'll never reach)
3. The receiver has no immediate tax consequence and it doesn't need to get reported on their side (thus wouldn't count against say ACA subsidies).
4. On sale of stock, my cost basis, etc is treated as their cost basis.. thus it would all be LTCG even if they immediately sold it because its stock I bought in 2009.
So does that mean since my BF and I are not married, I could just gift him stock every year so he could fill up his 15% tax bracket with LTCG too and thus even though we are not married basically get the same tax treatment? Seems like a loophole or I'm missing something?
Since we are using the money to buy a joint asset (ie. a bigger home), gifting him money to put into that home to me makes sense as long as I'm obviously not doing anything wrong.
P.S for those freaked out I'd gift him the money, we've been happily unmarried for 9 years, even if he ran away with it tomorrow, he deserves it, putting up with me during menapause, he's basically a saint.
My understanding is that
1. I can gift stock to anyone I choose.
2. The only tax consequence to me is that I need to declare the gift and it counts towards my lifetime gifting limit (which I'll never reach)
3. The receiver has no immediate tax consequence and it doesn't need to get reported on their side (thus wouldn't count against say ACA subsidies).
4. On sale of stock, my cost basis, etc is treated as their cost basis.. thus it would all be LTCG even if they immediately sold it because its stock I bought in 2009.
So does that mean since my BF and I are not married, I could just gift him stock every year so he could fill up his 15% tax bracket with LTCG too and thus even though we are not married basically get the same tax treatment? Seems like a loophole or I'm missing something?
Since we are using the money to buy a joint asset (ie. a bigger home), gifting him money to put into that home to me makes sense as long as I'm obviously not doing anything wrong.
P.S for those freaked out I'd gift him the money, we've been happily unmarried for 9 years, even if he ran away with it tomorrow, he deserves it, putting up with me during menapause, he's basically a saint.