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Taxes on kid's custodial accounts?

I have 3000+ capital gain this year in the kid's custodial account. How do I pay taxes for this account? I also have 5000+ capital loss carryover from prior years in my account. I assume the gain can be offset by the prior loss.

Look at the forms. UGMA accounts are under the child's SSN because it is THEIR money.

Thus you fill out a 1040 schedule D to show THEIR $3000 capital gain. That's around $215 TO $322 in income tax (the IRS will use YOUR capital gains rate for the amount above $1700).

Your losses are yours so you don't get to use them against the kid's capital gain.

The custodial accounts are counted as your assets until the kid is no longer you dependent.

If the kid's custodial account is reported under the kid's social security number, then the capital gain is reported on the kid's tax return. If the capital loss carryover is also from the same kid's custodial account, then that capital loss carryover can be used to offset this year's capital gain.

If the capital loss carryover is from your account, then you can only offset your capital gains this year, not the kid's.

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