Instead of the traditional cash gift, I want to give my gift in terms of something that could increase in value over the long term. Before doing that I wanted to ask the below questions:
- Do I have to pay tax & include those investments in my tax form or is it the responsibility of the gift receiver?
- Do I need to explicitly buy new units that can be transferred to the other person or can I use some part of my existing units?
- Is it possible to add the gift units to the other person's Traditional or Roth IRA directly?
- Will the amount of the gift be equal to the market value when it was bought or when I actually transfer it to the other person?
- Can I use this as a deduction on the next year's tax form?