Money from Grandma?

bigtrees
Mon, 10 May 2010 21:25:16 +0000

There are two tax liabilities here:

1) Capital gains tax that account owner will pay on the appreciated value of the assets. It will be taxed at 15% for most investments and same as her income tax bracket for specialty investments. I don’t think there is anyway she can avoid incurring these taxes.

2) Gift taxes incurred by giving a valuable gift to another person. As others have said, a $10k gift won’t be subject to gift taxes because up to $11k or so each year can be given without incurring gift tax liability.