NorthWest Biotherapeutics Inc (NWBO)

[kabunushi]

Excellent point, although this gift looks to me like it's certainly geared to the new amount. I would guess that it's seems likely to get applied to 2020 gifts? Correct me if I'm wrong by my analysis says that under the new law you would want to give away exactly $3.75M worth of unrealized capital gain. Up to that limit, the receiver doesn't have to pay an unrealized capital gain and of course neither does the giver. The receiver will pay capital gains tax on any gain over the limit but not under the limit.

Let's take a look here: 3M options at .25; stock trading at 1.58. Each option comes with 1.33 unrealized cap gain. She should be trying to give away exactly 3.75M worth of capital gain because the receiver won't get taxed on exactly that much - that cap gain effectively evaporates.

She hit the target almost exactly. Each donee will get hit with $0.08 per share immediately on receipt of the gift, (if I'm not mistaken that the taxman wants to tax the .08 as soon as it's given and doesn't have to wait until the gain is actually realized by exercise of the option). They will have 10 years to hold on to the option or exercise. Assuming the option goes more into the money their tax bill will be getting bigger but they get a tax-free appreciation for the first $1.25. The figures fit very close to exact fit assuming a $3.75M tax-free 'allowance' on gifts.