News about capital gains

A grandfather bought the same stock in 2009 and 2023, then gave his granddaughter 100 shares from the 2009 lot, which carried a sixteen-year gain. Under the carryover rule, the recipient takes the donor's basis and holding period, so if her 2026 taxable income stays within the 0% long-term capital gains bracket ($49,450 or less for a single filer), she can sell without federal tax on that gain. The article stresses choosing the right lot, notifying the broker in writing before the transfer, and keeping gifts at or under $19,000 per recipient to avoid filing Form 709. It also warns that gains above the 0% ceiling are taxed at 15%, that gifting forfeits the step-up in basis at death, and that the kiddie tax can apply to minors and some students.