RetireJapan

My 2019 NISA will be up at the end of this year. I think that year is made up of Apple stock I transferred from SMBC (who were charging me 3% on all purchases - smh - before I discovered this site and NISA). It's now worth ¥8m and my vague plan was to sell it at the end of December then in January move it to the new NISA (not worried about market moves in the interim). However that doesn't seem possible with the yearly limits.

For 2024 I will continue to pay in ¥120k pm to All Country, which will cover the ¥1.2m part. That will then leave me ¥2.16m for 2024, which is way less than I need.

That's in my wife's NISA. My own 2019 NISA value is over ¥6m so that doesn't help me.

We opened tax-reporting accounts but when Apple had a stock split, for some reason SBI moved the new shares into a new ippan account (still only Apple shares in that). I've never sold anything not in NISA so I've never explicitly announced any of my investments to the tax office and don't want to get into that from a paperwork angle. I will sell the ippan stock first when I retire in a decade. So when the 2019 NISA rolls over, will I have a choice which account it goes into? WIll I be able to choose the tax-reporting account? Has anyone rolled over with the two accounts?

Two of my children have NISA accounts which they hardly use, so I could put my money into those. I've never read anything to the contrary, but I assume that would be illegal (which I obviously wouldn't do)?

The new NISA is great but through sheer luck I'm not in an ideal situation. First World problem, I know.

Any advice would be appreciated.

Sounds like just selling enough Apple stock to buy in the 'growth' portion (2.4m per year) of the New NISA might be the way to go. There is no rush to sell the stock, right?

Putting it in your children's NISA is basically giving it to them, keep gift tax tax-free limit of 1.1m/year in mind

RetireJapan wrote: ↑Mon Jun 26, 2023 12:58 pm Sounds like just selling enough Apple stock to buy in the 'growth' portion (2.4m per year) of the New NISA might be the way to go. There is no rush to sell the stock, right?

Yes, I have no intention to sell it. Since I can't add it all into the new NISA I have to accept that it will go into a taxable account. I hope I can select to put it into the tax-reporting account.

RetireJapan wrote: ↑Mon Jun 26, 2023 12:58 pm Putting it in your children's NISA is basically giving it to them, keep gift tax tax-free limit of 1.1m/year in mind

I didn't know that. So I can do that without declaring it?

banders wrote: ↑Mon Jun 26, 2023 2:47 pm

RetireJapan wrote: ↑Mon Jun 26, 2023 12:58 pm Putting it in your children's NISA is basically giving it to them, keep gift tax tax-free limit of 1.1m/year in mind

I didn't know that. So I can do that without declaring it?

If the child receives total gifts in excess of Y1.1M in the year, they will be liable for Gift Tax. So long as you keep the total below Y1.1M this year, you will be fine.

But Junior NISA will not be available next year, so that option will no longer be available.

Tkydon wrote: ↑Mon Jun 26, 2023 3:07 pm If the child receives total gifts in excess of Y1.1M in the year, they will be liable for Gift Tax. So long as you keep the total below Y1.1M this year, you will be fine.

If I 'gift' one of my children (who are actually adult but not in FT employment yet) less than ¥1.1m and pay it into their NISA and the value rises to above ¥1.1m in the following year, presumably I can only take back ¥1.1m that year?

banders wrote: ↑Wed Jun 28, 2023 2:20 am

Tkydon wrote: ↑Mon Jun 26, 2023 3:07 pm If the child receives total gifts in excess of Y1.1M in the year, they will be liable for Gift Tax. So long as you keep the total below Y1.1M this year, you will be fine.

If I 'gift' one of my children (who are actually adult but not in FT employment yet) less than ¥1.1m and pay it into their NISA and the value rises to above ¥1.1m in the following year, presumably I can only take back ¥1.1m that year?

The fact that they are your children is somewhat irreverent if they are adults.

You can only receive 1.1 m from all sources, however investing in someone else's names for your own profit isn't strictly legal.

As soon as the money enters your child's bank account or trading account, it is their money.

The FSA would not like an arrangement where you are structuring your investments in your adult children's name to avoid tax yourself.

TokyoBoglehead wrote: ↑Wed Jun 28, 2023 3:18 am You can only receive 1.1 m from all sources, however investing in someone else's names for your own profit isn't strictly legal.

As soon as the money enters your child's bank account or trading account, it is their money.

The FSA would not like an arrangement where you are structuring your investments in your adult children's name to avoid tax yourself.

Ah, I see. OK, forget that then. I'd never heard of gift tax until a couple of days ago.

TokyoBoglehead wrote: ↑Wed Jun 28, 2023 3:18 am As soon as the money enters your child's bank account or trading account, it is their money.

I gather things can get complicated here, because the tax agency may deem that the money is really still yours, if you remain in control of it. (A 名義預金)

A Junior NISA did seem like a good way to make it clear the money was the kids’, but then from next year the Junior NISA rules change and the money can be had before the kid comes of age… I am going to play be the spirit of the rules so as to attempt to avoid suspicion…

sutebayashi wrote: ↑Wed Jun 28, 2023 11:51 am

TokyoBoglehead wrote: ↑Wed Jun 28, 2023 3:18 am As soon as the money enters your child's bank account or trading account, it is their money.

I gather things can get complicated here, because the tax agency may deem that the money is really still yours, if you remain in control of it. (A 名義預金)

Any more info on that?

banders wrote: ↑Wed Jun 28, 2023 4:26 am [Ah, I see. OK, forget that then. I'd never heard of gift tax until a couple of days ago.

https://www.mof.go.jp/english/policy/ta ... 2/e_04.pdf