Brian Lawson gives equity securities to his 15 year old son. If the securities are sold, in the following year, for more than their fair market value at the time of the gift, the resulting capital gain will be taxed in the hands of Mr. Lawson.

Question

Quizplus · Accepted Answer

The resulting capital gain from the sale of gifted securities is taxed in the hands of the recipient, not the giver, regardless of the recipient's age.

Brian Lawson Gives Equity Securities to His 15 Year Old