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Posted by Stuart Bronstein on April 9, 2008, 9:42 pm
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> I have a Texas UGMA account that I established for my son to pay for
> some of college. He is in fact now not a minor, and I pulled out
> $3500 last year as a drop in the bucket for his over-priced
> education. In completing Schedule D, I have no idea what the
> "basis" is in the stock, and there is certainly no help from the Form
> 1099-B. And I also got 2 different 1099-DIVs (not sure why I got 2)
> and there is of course a "Total Capital Gains Distribution" number
> wheich as I understand would go on line 13 of th Part II of the
> Schedule D. Now, in this transaction I will show (on my son's
> return) $321 in "Total Capital Gain Distributions" on Schedule D.
>
> Why in the world do I need to show anything on line 8(f) in gain?
> And if so, who in the world do I calculate that figure?
As you were told before, you don't have to find the basis. You have
two options. The first and most popular one is to find the basis and
deduct it from the proceeds received on the sale of stock, to determine
taxable income on the sale.
Under the other option, though, you don't find the basis. Instead you
just include the entire sale price of the stock in taxable income.
This goes on your son's return, by the way, not yours.
Stu
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