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My Dad is 78 years old and collects Social Security. I am his

son and am 50 years...
My Dad is 78 years old and collects Social Security. I am his son and am 50 years old. I have an LLC with a S Corp. I want to give him a gift for all the things he helped me with
when I was sick for 11 years and had a kidney transplant. The gift I want to give is shares in a company that hasn't gone public yet, but is projected to do well. If it does well
as expected it could be a real windfall. Would it be better to put the shares in his name or under my LLC, to pay less tax on the proceeds?
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Answered in 1 minute by:
10/1/2011
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 56,016
Experience: 29 years of experience as a tax, real estate, and business attorney.
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Good morning. You should give him the shares directly. You have a $5,000,000 lifetime exemption so you can make this gift without gift tax consequences.

 

 

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Richard
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Customer reply replied 6 years ago
Who would pay less tax on the proceeds?
Your dad is probably in a lower tax bracket...so presumably he would. If you hold the shares for at least 12 months before sale, the gain would be long term capital gain....so if you are in the 0% to 15% marginal income tax rate (including the gain from any sale), you would not pay any tax; otherwise you would be tax at the rate of 15% on the gain.
Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 56,016
Experience: 29 years of experience as a tax, real estate, and business attorney.
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Richard
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