How to avoid capital gains tax?

I would like to give my sister-in-law a loan to start a business. Unfortunately, my money is tied up in mutual funds. I want to avoid selling my mutual fund shares and giving her cash ? thus incurring capital gains on my investment. Is there anyway I could transfer the mutual fund shares directly to her without incurring capital gains and thus having to pay the associated tax? She would be in a much better financial position to pay the capital gains when she converts the mutual fund investments to cash.

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Reply to
AugieDoggie
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Sure; make them a gift. There's a limit how much you can give in one years without paying gift taxes (or at least filing a return), but it's at least $24,000 ($48,000 if you're both married).

Capital gains rate is fairly low, so hers might not be much less than yours if she has other income. Seth

Reply to
Seth

that would be a taxable gift subject to the gift tax rules

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Reply to
Benjamin Yazersky CPA

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