Can I give stock as a gift?

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September 2016
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Giving the gift of stock can be a great tool to transfer wealth. One thing to note is that your cost basis will carry over for tax purposes when they sell the stock. If they were to inherit the stock, then they would get a step up in basis, potentially saving taxes assuming there is growth in the stock. Another great strategy is to donate highly appreciated stocks to charity. You not only do not have to pay the capital gains taxes, but you also get a tax deduction for the contribution. Utilizing a donor advised fund to contribute the appreciated stock would allow for you to use the proceeds to benefit many different charities.

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