Can I avoid capital gains taxes by gifting assets?
Curious about Capital Gain
Gifting assets to someone else does not eliminate the capital gains tax liability. When you gift an asset to someone, the recipient generally assumes your cost basis (the original purchase price), and if they later sell the asset, they will be responsible for paying capital gains tax based on the difference between the cost basis and the sale price.
Additionally, there are specific tax rules and limitations related to gifting assets, including gift tax implications for the giver and potential gift tax exclusions and exemptions for the recipient. It's important to consult with a tax professional or advisor who can provide guidance on the tax implications of gifting assets and help you understand the specific rules and limits that apply in your situation.
Please note that tax laws and regulations can vary, so it's important to consult with a professional who is familiar with the tax laws of your jurisdiction.