to another person or charitable entity

Gifting of Securities
P.O. Box 659453
San Antonio, Texas 78265-9009
STEP 1: Complete this form if you wish to gift cash or security(s) to another person or charitable entity.
STEP 2: Return the completed and signed form to USAA Investment Management Company (USAA).
Account Owner USAA Number
From: Current Registration Name(s)
From: USAA Account Number
Internal Transfer
To: Current Registration Name(s)
To: USAA Account Number
External Transfer
To: Name of Receiving Firm
To: DTC Number
To: Receiving Firm Account Number
To: Account Registration
Name and Phone Number of Contact at Receiving Firm and/or Charitable Organization (if available)
Cash being gifted
Security(ies) being gifted
Security Name
USAA Investment Management Company
Symbol
m
800-531-USAA (8722)
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Number of Shares
m
Fax 800-292-8177
m
usaa.com
97256-0814
Specifically identifying shares being gifted
The IRS allows investors to specifically identify which lots they wish to sell or transfer. Unless you specifically identify which
shares you want to transfer, in the section provided below, USAA will transfer shares from your account using your account’s
current tax strategy method. Following settlement of the transfer you cannot change which shares transferred. If you transfer
mutual fund shares while using average cost as your basis method, then upon completion of the transfer, original cost will no
longer be available for all open positions for that particular mutual fund.
 I wish to use my account’s current tax strategy, or in the absence of any selection, the firm’s default method, for these gifted
shares - You can locate your account’s tax strategy in the cost basis system on usaa.com.
 I wish to select which lots are being gifted (Specifically selecting mutual fund shares may not be possible for shares acquired
prior to 2012 or for shares acquired after 2011 for which the average cost basis method is being used.) Please complete the
following section.
Complete this section only if you wish to specifically select which shares are being gifted.
Symbol
Purchase Date
Number of Shares
Original per share
Cost Basis (optional)
I authorize USAA to transfer cash and/or ownership of my securities specified above. If the new owner does not have an existing
USAA mutual fund and/or brokerage account, as applicable, then I understand USAA will open a new account according to the
enclosed new account application. I understand this transfer is effective the day USAA receives this form and any supporting
documents, provided they are in good order.
NOTE: New account owners may need to complete a new account application.
All account owners (or authorized agent) must sign below:
x
Signature
Date (mm/dd/yyyy)
Date (mm/dd/yyyy)
Date (mm/dd/yyyy)
x
Signature
x
Signature
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Important Information about Gifting
In general, the transfer of shares as a gift is not a taxable transaction; however, gift tax may apply to the donor. A gift is considered
complete when the donor has given up control over the property. For example, the funding of an irrevocable trust is a transfer that
represents a completed gift. Conversely, funding a revocable trust is a transfer that does not qualify as a gift since the donor has
not relinquished ownership of the security. Marital transfers, including divorce related transfers, are not gifts for tax purposes.
The importance of identifying shares acquired by a gift is significant for tax purposes as special cost basis determination rules apply,
see below.
Cost Basis of Securities Acquired by Gift
In general, the basis of securities acquired by gift will be the same as the donor’s basis unless the securities are in a depreciated
position (fair market value is less than donor’s basis) at the time of the gift. Basis of gifted security in a depreciated position at
the time of the gift cannot be determined until subsequent sell of the security and will have a different basis when sold at a gain
than when sold at a loss
• If sold at a gain (a price above donor’s basis) – basis will be donor’s basis.
• If sold at a loss (a price below donor’s basis) – basis will be one of the following:
• Fair market value (FMV) on the date of the gift when the sales proceeds is equal to or less than FMV on date of gift, or
• Sales price when the sales price falls between the donor’s basis and FMV on date of gift.
Tax Strategies Available to Investors
USAA’s default accounting method is FIFO for individual stocks and average cost method for mutual funds. Members can establish
a different tax accounting method by using the Tax Strategy tab in our cost basis services available on usaa.com. The following tax
strategy methods are available:
•
•
•
•
•
•
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First-In, First-Out (FIFO) Selecting this option will result in those lots, which members purchased first to be transferred
or sold first.
Last-In, First-Out (LIFO) Selecting this option will result in those lots which the member purchased last to be transferred
or sold first.
Highest-In, First-Out (HIFO) Selecting this option will result in those lots with the highest cost to be transferred or sold first.
Minimum Taxable Gains (MinTax) Selecting this option allows the system to determine the best lot to sale or transfer to minimize after tax gains.
Maximize Taxable Gains (MaxGain) Selecting this option will sale or transfer lots first that would realize the largest
taxable gain.
Specific Lots (Versus Purchase) lets you individually choose which lots you sell or transfer.
Average Cost (Avg Cost) Average cost applies only to Mutual Fund investments. Using this method averages the total cost of the member’s mutual fund position across all of their tax lots. Beginning Jan. 1, 2012, you will be able to choose among the different tax strategies, as described above, for shares acquired after this date. For mutual fund shares acquired prior to 2012, USAA will only display basis using average cost.
Always consult your tax advisor regarding your specific situation prior to using this information for your tax purposes.
For more details about cost basis and your securities, please refer to IRS Publications 550 and 564 at www.irs.gov.
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