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Posted by alle on March 8, 2008, 1:00 pm
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If a child under 18 has unearned income, dividends, interest and
cap.gains plus a distribution from a trust ( K 1) should the parent
report his income on their return or should he file his own return?
Forms 8814 and 8615 do not cover the case for K1 distributions.
Al F.
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Posted by Condor on March 8, 2008, 3:25 pm
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> If a child under 18 has unearned income, dividends, interest and cap.gains
> plus a distribution from a trust ( K 1) should the parent report his
> income on their return or should he file his own return? Forms 8814 and
> 8615 do not cover the case for K1 distributions.
> Al F.
Does the child's investment income exceed $850?
Condor
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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by alle on March 9, 2008, 4:30 pm
Please log in for more thread options Condor wrote:
>>If a child under 18 has unearned income, dividends, interest and cap.gains
>>plus a distribution from a trust ( K 1) should the parent report his
>>income on their return or should he file his own return? Forms 8814 and
>>8615 do not cover the case for K1 distributions.
>>Al F.
>
>
> Does the child's investment income exceed $850?
>
>
>
Investment income is less than $850 but K1 trust distribution brings it
up to $1500.
>
Al F.
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Mark Bole on March 9, 2008, 11:15 pm
Please log in for more thread options alle wrote:
> Condor wrote:
>>> If a child under 18 has unearned income, dividends, interest and
>>> cap.gains plus a distribution from a trust ( K 1) should the parent
>>> report his income on their return or should he file his own return?
>>> Forms 8814 and 8615 do not cover the case for K1 distributions.
The income from the trust should be treated just as it is reported on
the K-1, namely interest, dividends, etc. Whether it's reported on a
K-1 or a 1099 is irrelevant.
Capital gains *distributions* (from mutual funds) are eligible for the
parents' election, actual capital gains from sales of assets on Schedule
D are not.
>> Does the child's investment income exceed $850?
> Investment income is less than $850 but K1 trust distribution brings it
> up to $1500.
Investment income under $1700 is not subject to "kiddie tax". To keep
things simple and also obtain the best tax result in this situation, the
child should file his or her own return.
-Mark Bole
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Ira Smilovitz on March 9, 2008, 10:09 pm
Please log in for more thread options > If a child under 18 has unearned income, dividends, interest and cap.gains
> plus a distribution from a trust ( K 1) should the parent report his
> income on their return or should he file his own return? Forms 8814 and
> 8615 do not cover the case for K1 distributions.
> Al F.
Child files a full 1040 with 8615. Parents cannot report the child's income
on their own return when capital gains are involved.
Ira Smilovitz
--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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