If the gift is less than $15,000 or $30,000 per couple, there is no gift tax to pay. If the gift exceeds $15,000, the donor pays the gift tax. There is no income tax to your children for gifts to them. There are no income tax deductions for the donor on gifts to a child (only gifts to charities will give a donor an income tax deduction.) Once the donated property is in your child's name, he will then pay income tax on the earnings from the donated property (i.e., dividends received on the gifted stock).