Discussion:Gifting ESPP
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Discussion Forum Index --> Advanced Tax Questions --> Gifting ESPP
Discussion Forum Index --> Tax Questions --> Gifting ESPP
| 3 December 2007 | |
| Client said he is gifting some appreciated stocks he purchased from his employee stock purchase plan to his college child (over 18). The idea is: the child will sell those stocks and pay 5% capital gains taxes before the new kiddie tax kicks in next year.
I am looking for direction regarding the following questions: 1) Are there any restrictions on ESPP being gifted? Is it even giftable? 2) How is the sale going to be treated tax wise? I searched the forum and did not find much discussion. Please direct me to the appropriate reading and citations. Thank you for your help. | |
| 3 December 2007 | |
| Depends on how long he has held the shares. He may trigger a disqualifying disposition. | |
| 3 December 2007 | |
| Are there any restrictions on ESPP being gifted? If client has exercised the options and has converted options to stock, then no.
Is it even giftable? The client cannot gift the options, the options are held by the employee and only the employee has the 'rights' to 'exercise' (right?) Ask client for a copy of the ESPP contract from the company. How is the sale going to be treated tax wise? Depends on the holding period, qualifying vs. disqualifying disposition. I don't know if this helps, Good Luck TexCPA Seems Peego just asked this ? | |
