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Subject:  custodial account Date:  12/14/1998  8:47 AM
Author:  ineedbucks Number:  7114 of 127753

first year into custodial acct. for 6 yr old grand-
child with on-line brokerage firm. Have gained above
question: before years' end do i need to liquidate back
into the account then buy right back in to the same
stock (still rising) in order to lock in the $650 of
unearned income allowed to be tax free for '98 and start at capital gains "0" for '99 ?
question: if i should be in for long term investment
(several years in same stock) and don't liquidate back
into the account at each years end, do i forfiet the
tax exempt $650 of unearned income allowable per year
or does the tax advantage accumulate through the life
of the custodial account ? need to stay year to year
thanks for any good insight.

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