Who pays taxes when you transfer shares of stock? The original owner or the new owner?

Question

Who pays taxes when you transfer shares of stock? The original owner or the new owner?

Answer 1

wouldn't be a very good deal if the new owner had to pay taxes twice, when he receives the shares and then sells them later. so, the seller will have to pay the taxes.

Answer 2

Do you mean capital gains tax?  The seller.

Answer 3

The original owner will pay taxes if they have a capital gain when they sell the stock.

The new owner will not owe taxes until they sell (assuming the stock has appreciated or gained value).

Answer 4

It depends.  A straight to straight sale, the tax comes from the seller in the form of capital gains tax.  If one sold the stocks at a loss, it's actually a tax deduction. If it's part of the mutual fund, those investors will see those taxes affecting their rate of return as the fund manager uses the pooled money to pay taxes, but doesn't necessarily report the expenses to the investors.