Are there tax advantages to exercising my stocks and giving them to my wife, who is not a US citizen?
September 15, 2000
Subject: Question re: gifting
Date: Thu, 24 Aug 2000
Thank you for allowing me to present my question to you. I’m going to do a “Cashless Same Day Sale.” One question came to my mind re. gifting of stock options.
My wife has an L2 visa which doesn’t allow her to have a SSN (and therefore doesn’t allow her to work in US) but she does have an ITIN.
I was wondering if there are tax advantages if I exercise my stocks, give them to my wife as a gift and she would do the sale transaction?
Please let me know.
Date: 11 Sept 2000
There would be no income tax advantage in making a gift of the option to your wife before exercising it.
Your employer would still be required to report the ordinary income on your W-2.
You also have special gift and estate planning issues to deal with because your wife is not a citizen. I recommend that you consult with an estate planning attorney about this soon.