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Can I open Investment Account, (for Stock) under minor name?

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uspeed
10/23/05 11:50 AM
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.<br><br>Any one knows or do this?
WikiPost
10/23/05 11:51 AM
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nmathew
10/23/05 12:14 PM
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.<br><br>Long term capital gains taxes are pretty low right now. I don't know that I would go through this pain.<br><br>Just remember, I'm some know nothing on t3h intarwebs.
qkslvr
10/26/05 11:04 AM
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
10/26/05 11:21 AM
UGMA - Uniform Gift to Minors Act
EugeneV
10/27/05 7:03 PM
RJL1 said: <blockquote><hr>UGMA - Uniform Gift to Minors Act<br><hr></blockquote><br><br>Replaced with UTMA - Uniform Transfer to Minors Act - in most states by now.
deej2006
10/27/05 7:28 PM
<blockquote><hr>So that I have to pay capital gain on the lower tax bracket.<br><hr></blockquote><br><br>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.
fboyfboy
10/27/05 8:01 PM
Up to $1600 investment income can be legally classified as such.
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