Kenny Is Thinking of Making a Substantial Gift of Stock

question 62

Essay

Kenny is thinking of making a substantial gift of stock to his fiancée, Maria. The wedding is scheduled for October 1 of the current year. Kenny already has exhausted his unified credit. He also is considering giving $26,000 cash this year to each of his three children by a previous marriage. What tax issues should Kenny consider with respect to the gifts he plans to make to Maria and his three children?

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Definitions:

Social Identity

The portion of an individual's self-concept derived from perceived membership in a relevant social group, such as a national, religious, or occupational group.

Feigned Scarcity

A tactic wherein a sense of scarcity is artificially created to increase demand or perceived value.

Lowball Technique

A persuasion strategy where an initially favorable offer is made, then its terms are made less favorable.

Evolutionary Psychologists

Scientists who study the psychological adaptations of humans to the changing physical and social environment, particularly from an evolutionary perspective.