Give Stocks Instead of Toys This Holiday Season

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What gift is more considerate than a bundle of cash?

It is a stock.

It is easier to give stock than cash as a gift, and there are benefits for you. Instead of liquidating and paying capital gains taxes, donating stocks can be a beneficial instrument when considering your legacy.

Beginning in 2022, the IRS will permit annual gifts of up to $16,000 per recipient, including stock. In 2023, the figure will rise to $17,000. Couples filing jointly may give up to $16,000 each in 2022 and $17,000 each in 2023, for a total of $32,000 or $34,000 per beneficiary. This $16,000 cap in 2022 is not contingent on familial or marital ties.

Therefore, you could distribute $16,000 in stock to your children, grandchildren, in-laws, friends, and neighbors each year. Couples filing jointly may also be able to split gifts by filing Form 709, which permits them to use the doubled gift maximum even if only one spouse is donating.