I want to know if I can open investment account under minor name, and my name as secondary. So that I have to pay capital gain on the lower tax bracket. I know you can have bank/cd account and you don't have to pay tax on the first $750 under their name. Just want to do for Investment account so capital gain comes under lower tax.
I'm fairly certain you can do this. I also believe that this would legally make the money the child's. In short, if the kid is paying the taxes (filing) it's the kid's cash. You'd be acting as custodian of the money, and the kid would have a strong case for kicking your rear (literally as well as in court) if you withdrew everything when they were 17 and closed the account.
Long term capital gains taxes are pretty low right now. I don't know that I would go through this pain.
Just remember, I'm some know nothing on t3h intarwebs.
qkslvr
Member
posted: Oct. 26, 2005 @ 11:04a
The easiest way to do this is a custodial account. I have several setup for grandchildren through Sharebuilder. The money does belong to the kids, and they can access it after they reach 18 years of age.
RJL1
Ancient Member
posted: Oct. 26, 2005 @ 11:21a
UGMA - Uniform Gift to Minors Act
EugeneV
Ancient Member
posted: Oct. 27, 2005 @ 7:03p
RJL1 said: UGMA - Uniform Gift to Minors Act
Replaced with UTMA - Uniform Transfer to Minors Act - in most states by now.
deej2006
Member
posted: Oct. 27, 2005 @ 7:28p
So that I have to pay capital gain on the lower tax bracket.
What you are proposing will not work. If an auditor catches you, he will readjust both your claim and your child's as if the capital gain was yours.
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