Frank owns a lot of stock which pays dividends each December. In November each year Frank gifts $50,000 of dividends to his adult daughter. He does not report the $50,000 as dividend income since it is paid directly to his daughter. The daughter also doesn't report the $50,000 as income since it is a gift. Is this good tax planning? Explain the income tax consequences. What would be the present and future income tax consequences if Frank gifted the stock outright to his daughter? Remember I am only asking for income tax consequences, not gift tax consequences that will be covered later in the course.