Tax code is so complex given enough readings and creative interpretations, I’m sure there’s a way. If I had to guess, it would be putting the stock into some financial vehicle, making grandma the custodian of the vehicle, then grandma disassembles the vehicle and kicking the bucket, giving the step up basis.
If I’m reading it correctly, the gift limit would apply to the purchase price of the stock, not the current value. As long as the stock isn’t converted to cash, the current value is potential rather than actual, and the actual value is the purchase price. That is what triggers capital gains/capital losses, the change from potential to actual value to compare to the original price.
It’s legit, but may be limited to the gift taxable limit of 19k when going to grandma. The step up basis is what “removes” the tax after.
When would it not be limited by the 19k annual exemption?
Tax code is so complex given enough readings and creative interpretations, I’m sure there’s a way. If I had to guess, it would be putting the stock into some financial vehicle, making grandma the custodian of the vehicle, then grandma disassembles the vehicle and kicking the bucket, giving the step up basis.
Legal notice: I am not your accountant.
Find more relatives in poor health?
If I’m reading it correctly, the gift limit would apply to the purchase price of the stock, not the current value. As long as the stock isn’t converted to cash, the current value is potential rather than actual, and the actual value is the purchase price. That is what triggers capital gains/capital losses, the change from potential to actual value to compare to the original price.