Discussion Archives:GRANDPARENT CUSTODIAN ACCT SALE OF STOCKS

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Discussion Forum Index --> Advanced Tax Questions --> GRANDPARENT CUSTODIAN ACCT SALE OF STOCKS


Discussion Forum Index --> Tax Questions --> GRANDPARENT CUSTODIAN ACCT SALE OF STOCKS

MRBARRYTAX (talk|edits) said:

18 February 2008
GRANDPARENT HAD CUSTODIAN STOCK ACCT FOR GRANDCHILD, AND GRANDPARENT SOLD STOCK AND KEPT PROCEEDS. SHE AND GRANDCHILD ARE CURRENTLY ESTRANGED. SHE IS WILLING TO PAY ANY CAPITAL GAINS, BUT HOW DO I REPORT THE SALE ON GRANDPARENT'S SCHEDULE D, SINCE SSN#s WILL NOT MATCH?

Kevinh5 (talk|edits) said:

18 February 2008
you know that this is illegal for the grandparents to keep the granchild's money, don't you? Do you want to help your client do something illegal?

MRBARRYTAX (talk|edits) said:

18 February 2008
Since grandparent has already sold stock, I will explain to her to send proceeds to grandchild,

and grandchild is responsible to report sales on respective tax forms. Is that appropriate?

Burke (talk|edits) said:

19 February 2008
Yes. Grandchild will get 1099-B in his/her name or SSN. Grandchild must report on his own tax return and proceeds belong to him. Depending on his age/income status if sold in 2007, may have low rate. Shame grandparent didn't wait til 2008 for zero cap gains in low bracket!
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