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Posted by Arthur Kamlet on May 29, 2007, 10:45 pm
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> My son was given some stock for his 16th birthday. He
> recently decided to sell it and, for convenience, it was
> sold through my brokerage account. Since it will be 1099'ed
> to me, can I declare it as a nominee transaction and put it
> on his 2007 return rather than mine? There appears to me a
> couple of hundred dollars of difference in the amount of
> tax.
If you have proof you were simply acting as nominee for him,
then yes, you can nominee that back to him, and issue him a
1099-B (part of the nominee procedure.)
But remember that if he is under age 18 (or under age 19 if
his unearned income/total income ratio is too high, and that
becomes age 23 if a full-time student) then he will use the
Kiddie tax to calculate his tax. If he has to use Kiddie
tax, the difference is only about $75 not $hundreds.
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