Discussion:Tax on a Child's Investment Income
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Tax Questions --> Tax on a Child's Investment Income
Kaykayneil (talk|edits) said: | 30 March 2006 |
| I am working on a tax return where my client has two young children (under 14), I think using 8814 letting the investment income in the child's social security number, be taxed to the parents.
So my question is: this child sold some shares of stock. The sales price less cost basis is a $590. loss, so can this loss be shown on schedule D of the parents return. The child has only $39. worth of dividends received. If I file the return for the children (similar income) it will be a loss and not off set any other income. What is your opinion? Kathryn Neil I have been doing taxes since 1962. | |
| 5 April 2006 | |
| NO. The children must file their own tax return when stock is sold. That means that children's interest dividends etc should not go on parent's 8814. All of children's income should go on their own tax return. Form 8814 can only be used for interest, dividends, and capital gains distributions NOT for stock sales. | |
| 15 February 2008 | |
| Just to reiterate what I have found here from 2006 - child's receives 1099-B - so all investment activity is reported on tax return of child and not parent for that year? Thanks for your affirmations! | |
To join in on this discussion, you must first
log in.
