George and Edith Jackson own 500 shares of publicly traded Acme stock. They purchased the shares 10 years ago for $70,000, and now wish to give their son, Albert, a gift of the stock.

Albert is 30 years old and not a dependent of his parents. George and Edith file a joint return for 2022 and are in the 24% marginal tax bracket while their son Albert is in the 10% marginal tax bracket. George and Edith are not concerned with gift taxes, as their estate is significantly below the lifetime exemption equivalent. In order to create the lowest possible tax liability on the sale of the stock you would advise that:

1. George and Edith sell the shares and give the proceeds to Albert net of taxes.
2. Give the shares as a gift to Albert and let him sell the shares and then pay taxes at the parent's tax rate.
3. Give the shares as a gift to Albert and let him pubsequently sell the stock. He will not pay any taxes on the gain since he is in the 0%*ax bracket for long term capital gains.
4. Give the shares as a gift to Albert and let him immediately sell the shares. He will pay taxes at a 10% tax rate on the sale of the stock since he will have owned the stock for less than one year