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    jshaw40's Avatar
    jshaw40 Posts: 1, Reputation: 1
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    #1

    Mar 23, 2016, 11:00 AM
    Gifting Stock.
    If I gift $10,000 of a stock to a grandchild, will it pass at present value... and will I be able to avoid paying capitail gains as I would if I cashed the stock to give cash?Would the grandchild's tax basis at a later date be this present amount?
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
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    #2

    Mar 23, 2016, 11:53 AM
    When stock is passed to a grand-child (or any else) as a gift, it retains the same basis as the original owner.

    The only time the value steps up to current FMV is if the stock is received as an inheritance.
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