My parents each gave me a gift of $13,000 worth of stock for a total of $26,000. When am I subject to taxes for receiving this gift?

ANSWER

The BIDaWIZ Team's Answer:

The person who receives a gift does not have to pay any gift taxes. Rather, they may only pay taxes when they sell the stock which depends if the stock is in a gain or loss position. As for your parents, the IRS allows an annual gift exclusion of $13,000 or $26,000 for a married couple filing jointly. Therefore, no gift tax would apply to them either. If they provide a gift in excess of $13,000 or $26,000 together, they can claim the lifetime gift tax exemption but must report the gift on Form 709.