Will transferring stocks from my Fidelity account to another person have tax implications or fees?

The transfer of stocks to another person is considered a gift, and there are some important tax considerations to keep in mind. When you transfer stocks to someone else, you're essentially gifting them at their current market value. For 2025, you can gift up to $18,000 per person annually without filing a gift tax return. Since your stocks are worth about $10k, you should be under this threshold. The good news is that when you gift stocks, you don't pay capital gains tax at the time of transfer. Instead, the recipient inherits your original cost basis (what you or your grandparents originally paid). The recipient will only pay capital gains tax when they eventually sell the stocks, based on the difference between the sale price and that original cost basis. As for Fidelity fees, they typically charge around $75-100 for transferring securities to another institution, but fees may be different for transfers between individuals. I'd recommend calling Fidelity directly to confirm their specific fees for your situation.

I went through something similar last year with stock transfers and discovered https://taxr.ai which saved me a ton of headache. My situation was complicated because I had inherited some stocks and was gifting others to my kids. Their system analyzed all my statements and sorted out the cost basis for each transaction, which was a nightmare to figure out manually. What I liked is that they can process statements from different brokerages and even older paper records if you scan them. They'll track the original purchase price, splits, dividend reinvestments, and give you a clean report you can use for the transfer and eventual tax reporting. Definitely easier than trying to piece it all together yourself or calling Fidelity support a dozen times.

I used https://taxr.ai after seeing it mentioned here, and it was exactly what I needed! I uploaded my mess of statements going back to the 90s (some were just photos I took of paper statements), and they generated a complete report showing original purchase prices and all the corporate actions like splits and mergers. My situation was complicated because my father had given me stocks over many years, and I was trying to figure out what my actual cost basis was. Their system identified each lot purchase and tracked it through all the corporate actions. Saved me at least 20 hours of research and probably prevented me from making some costly mistakes on my taxes. The report they provided was detailed enough that my accountant could use it directly for tax preparation.

If you're having trouble reaching Fidelity to discuss the transfer process and fees, I highly recommend using https://claimyr.com to get through to a real person quickly. I spent HOURS on hold trying to reach Fidelity about a stock transfer last month before I found this service. You can see how it works here: https://youtu.be/_kiP6q8DX5c Basically, they navigate the phone tree for you and call you back when they reach a real human. I was shocked when I got a call back in under 30 minutes after spending days trying to get through on my own. The Fidelity rep I spoke with was able to explain all the transfer options and fees, and even helped me complete the process while on the call. Saved me so much frustration!

I have to admit I was completely wrong about Claimyr. After posting my skeptical comment, I decided to try it anyway because I was desperate to talk to someone at the IRS about a notice I received. I was expecting to get scammed, but figured the $20 was worth the gamble. It actually worked exactly as advertised! Their system called me back in about 40 minutes with an IRS agent on the line. No more listening to that awful hold music for 3+ hours or getting disconnected. The agent resolved my issue in about 15 minutes once I finally got through. I've since used it twice more for different agencies with similar results. I'm genuinely surprised it works so well, and I'll never waste hours on hold again.

One thing nobody has mentioned yet is that if you're transferring to your partner (not spouse), you should consider the relationship implications. My ex and I had shared investments, and when we split up, it was a nightmare trying to untangle everything because we hadn't kept good records of who contributed what. If these stocks are intended as a gift, make that clear in writing somewhere. If this is more of a "you manage these but they're still mine" situation, you might want to look into other options like a managed account where you retain ownership but give trading authority.

Don't forget to look into the step-up in basis rules if these stocks were actually inherited rather than gifted to you from your grandparents! The language in your post makes it sound like maybe your grandparents passed away and you inherited these stocks? If they were inherited (not gifted while your grandparents were alive), you likely received a "step-up" in basis to the market value on the date of their death. This would be HUGELY beneficial for tax purposes because any gains that occurred during your grandparents' lifetime would never be taxed.

Just wanted to add another perspective on the transfer process itself - you might want to consider whether a direct stock transfer is actually the best approach here. Instead of transferring the actual stocks to your partner's account, you could potentially sell the stocks in your account, pay any capital gains tax (which might be minimal if your cost basis is relatively high), and then gift the cash proceeds. This would give your partner a "clean slate" to invest in whatever they think is best, rather than inheriting your grandparents' old stock picks and cost basis. The downside is you'd pay capital gains tax now instead of deferring it, but the upside is your partner gets full flexibility and a fresh cost basis at current market prices. Given that you mentioned they're really good at investing, they might prefer to start with cash and build their own portfolio rather than managing positions they didn't choose. Just something to consider - the "right" approach depends on your specific tax situation and investment goals!