This is a tax planning question once we move to Japan.
My spouse (Japanese) and myself (US) are considering gifting our dual national child appreciated stocks so he can sell it as opposed to us selling it. The purpose is to reduce our tax liability and give him some additional income while he is a full time college student. The assets are held in a US brokerage account under my spouses name and a second account under my name.
Our son has not lived in Japan in more than 10-years, so I believe he is not subject to any Japanese gift/income tax, Would I be as a non-permanent resident in Japan or would my spouse be as a Japanese citizen have any tax obligations in Japan, assuming I have remittance?
I am aware that if my spouse or I each gift more than the annual US gift limit we must report this to the IRS, which will be reported against our lifetime limits, but will not be taxed as a gift. I am also aware he would be responsible for paying the income taxes above the cost basis. However since he would be a full time student, he likely would be below the income threshold to pay LTCG tax on the appreciated stocks.
by ForeverFlashy5637