A customer has a long stock position that has appreciated greatly in value. It is now October and the customer wants to protect the gain at no cost, but not be taxed until the next year. To achieve this, the customer could:

Question

Gabriel

Business

5 September, 20:30

A customer has a long stock position that has appreciated greatly in value. It is now October and the customer wants to protect the gain at no cost, but not be taxed until the next year. To achieve this, the customer could:

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Rocky · Answer 1

Transfer to spouse

Explanation:

Assets transferred to spouse are exempted from potential Capital gain Tax.

This is a tax avoidance method of gifting assets to spouse or civil partner in order to utilize a free allowance of up to$24,000 dollars annual exemption.

On a general note, the spouse is believed to have acquired the stock at the original cost to the transferring spouse.

The customers can beat tax if he choose to adopt the transfer method.