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Financial Planning / Tax Strategies
|Subject: No Income - No Return?||Date: 3/3/2003 1:35 PM|
|Author: vkmath1||Number: 64241 of 122503|
I have 2 UTMA custodial accounts for my 13 & 16 year olds. In 2001 neither had earned income and their investments lost money (-$2,500 & -$3,000). I filed one extension on their taxes, but never got aroung to filing their returns and still have not. In 2002, the '01 loss carry forward offsets all of their '02 gains. The 16 y/o had $1,500 of earned income in '02, which the stock losses offset.
1) Do I need to file returns when they had no reportable income?
2) If I do need to file their '01 returns, how do I handle the fact that I never filed the required extension forms and am now 1 year late? What will the penalty be? Their investment income that year was negative.
3) Lastly, can I file the 13 year old's losses on my return to offset my capital gains?
Thanks for your feedback!
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