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Subject:  Child's 1099-B Date:  2/1/2000  4:26 AM
Author:  WAIOLA Number:  26572 of 127753

Last year my IRA manager advised me that I could reduce my taxes by withdrawing 1/2 of my 8yr old son's mutual fund (which was giving him dividends over $700) and invest the money in stocks like MSFT, AOL, DIS. I did this and now I've received a 1099-B for the $4000 I redeemed,as well as the normal 1099-DIV, from my son's mutual fund.
My question is how do I file the 1099-B for my son? Do I include it in my 1040 Section D, Capital Gains and Loses? Do I file a FORM 8615 (computation tax for investment of children under 14)? I'm not sure how to treat this as I thought that by reinvesting my son's monies into stocks under his name was suppose to wash this. Am I missing something here?
Sorry but my IRA manager passed away in the later part of last year, or I would've asked him. Can anyone help?

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