Ask Terry Questions Selling vs. transferring stock

Selling vs. transferring stock

By Terry Savage on September 05, 2023 | Wild Card

I would like to gift my family member $10,000 from a stock I hold. I am not sure if it is better to sell the stock and deposit the money into my bank account then right them a check or transfer the stock amount into their stock account in their name with the same company. I’m concerned that the taxes might be different depending on which way I do this transaction.

Terry Says

If your goal is just to give her money, the best and easiest way would be for you to sell the stock, and pay the taxes. The maximum would be a 20% tax rate, or lower, depending on your income and assuming you have held the stock at least one year.
You are allowed to gift up to $17,000 per year to any number of recipients with no tax consequences.



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