Tax Guru – Ker$tetter Letter

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Gifting Appreciated Assets

Posted by taxguru on August 10, 2007

Q:

Subject: Re: Gifts Tax Free For Recipients

Good morning, Kerry.   I’m assuming the question had to do with cash gifts rather than of appreciated assets.  I’ve seen some surprised people when the recipients of appreciated assets were told that they received the basis of the donor.

 

In our charitable giving world, we tell people to, where possible, give cash to family and appreciated assets to charity.

A:

That particular email did have to do with cash; but you are correct in noting the carry-over basis aspect to non-cash gifts.

As I have discussed on a number of occasions, it is a bit more complicated than simply donating appreciated assets to charity.  Another part of tax and gifting plans often involves deciding which family member has the lowest tax bracket and either gifting or holding those assets so that person can sell them with the lowest tax bite. 

Thanks for writing.

Kerry Kerstetter

 

 

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