Hello!
My small child has a utma with contributions $3k and a gain of $600. This is the only income they have. I would like to tax gain harvest for them until they reach the approx 2.3k gain maximum and trigger the kiddie tax (where they are tax at the parent's tax rate).
Would I do this?
1- Sell the current 3.6k. Then rebuy a similar fund, and file a 1099-B for the year that I do this?
2- Do I need to keep track of the tax gain harvesting and why?
3- Is it a good idea to do the tax gain harvest every year for the account?
4- As long as I am under the $2.3k earnings gain for the child each year, then they are taxed at 0%?
5- Is there a difference if I sell/keep the fund for less than a year? It would be taxed at 0% if under the 2.3k gains?
6- Anything else to consider?
7- Any other good things to do for kids?
Thanks!
My small child has a utma with contributions $3k and a gain of $600. This is the only income they have. I would like to tax gain harvest for them until they reach the approx 2.3k gain maximum and trigger the kiddie tax (where they are tax at the parent's tax rate).
Would I do this?
1- Sell the current 3.6k. Then rebuy a similar fund, and file a 1099-B for the year that I do this?
2- Do I need to keep track of the tax gain harvesting and why?
3- Is it a good idea to do the tax gain harvest every year for the account?
4- As long as I am under the $2.3k earnings gain for the child each year, then they are taxed at 0%?
5- Is there a difference if I sell/keep the fund for less than a year? It would be taxed at 0% if under the 2.3k gains?
6- Anything else to consider?
7- Any other good things to do for kids?
Thanks!
Statistics: Posted by JemmaJune — Sat Feb 01, 2025 5:20 pm — Replies 4 — Views 211
