Gifts are only taxed if they are worth more than $16,000—or $32,000 for couples— not destined for a spouse, and exceed the lifetime gift tax exemption, which as of 2021 is set at $11.7 million ($12.06 million for 2022). These generous allowances generally mean that a taxable event isn’t triggered until the gifted stock is eventually disposed of by the recipient. The amount of tax paid on a profitable sale depends on the beneficiary's income, the holding period, and the gain that was made relative to the original purchase price. Losses, too, must be declared and can be used to reduce tax liabilities.