Arthur,age 99,holds some stock purchased many years ago for $10,000 which is now worth $100,000.He is trying to plan for the eventual disposition of this stock.Arthur's only remaining family member is his grandson.For income tax purposes,Arthur should

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If Arthur sells the stock, he will trigger capital gains tax on the difference between the purchase price and the sale price. If he gifts the stock, his grandson will take over his cost basis and potentially be subject to capital gains tax when he sells the stock in the future. However, if Arthur leaves the stock to his grandson as an inheritance, the cost basis of the stock will be stepped up to its current market value upon his death. This means that if his grandson sells the stock, he will only owe taxes on any appreciation that occurs after he inherits the stock, rather than on the entire gain since purchase. Therefore, leaving the stock as an inheritance will result in the least tax burden for Arthur's grandson.

Arthur,age 99,holds Some Stock Purchased Many Years Ago for $10,000