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.
Users like you can add images, links and other relevant information about this topic.
posted: Oct. 23, 2005 @ 11:51a
Quick Summary is created and edited by users like you... Add FAQ's, Links and other Relevant Information by clicking the edit button in the lower right hand corner of this message.
Click to copy code and go to .
Thanks for visiting FatWallet.com. Join for free to remove this ad.
posted: Oct. 23, 2005 @ 12:14p
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.
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.
posted: Oct. 26, 2005 @ 11:21a
UGMA - Uniform Gift to Minors Act
posted: Oct. 27, 2005 @ 7:03p
RJL1 said: [Q]UGMA - Uniform Gift to Minors Act
Replaced with UTMA - Uniform Transfer to Minors Act - in most states by now.
posted: Oct. 27, 2005 @ 7:28p
[Q]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.
posted: Oct. 27, 2005 @ 8:01p
Up to $1600 investment income can be legally classified as such.
Disclaimer: By providing links to other sites, FatWallet.com does not guarantee, approve or endorse the information or products available at these sites, nor does a link indicate any association with or endorsement by the linked site to FatWallet.com.
Members of our community may attach files to a post in accordance with the User Agreement. FatWallet is not responsible for the content, accuracy, completeness or validity of any information contained in any attached file. Files have *not* been scanned for viruses. Be especially wary of Excel files which may contain malicious content.
Earn Cash Back while you shop - just 3 simple steps.
1. Sign Up so we know who to pay! (It's FREE.)
2. Shop through FatWallet for deals from your favorite stores. Your online purchases earn Cash Back that builds in your FatWallet account.
3. Get Paid by requesting a payment via check or PayPal.
FatWallet coupons help you save more when shopping online. Use our Coupons Search to browse coupons and offers from thousands of stores, gathered into one convenient location.
As part of our FatWallet Community, you can share deals with almost a million shoppers in our forums. Forum content is generated by consumers for consumers. Share deals, money-saving tips, and more. It's FREE, fun, and addicting.
Our customer experience team is here around the clock - real people ready to assist.