Many family members give money to their children. For children with lower incomes, there is an opportunity to give them appreciated stock to shift the capital gains to a lower tax bracket.
Current tax law has separated capital gains into four separate tax brackets.
Those in the lowest income tax brackets experience a 0% federal capital gains tax. In 2016, this capital gains opportunity is available to single filers with income under $37,650 and married filing jointly filers with income under $75,300.
Meanwhile, the highest income tax brackets experience a 23.8% federal capital gains tax. In 2016, the highest bracket …Read More