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Subject:  DRIP and teenager - taxes on sale Date:  4/21/2009  12:21 PM
Author:  stocks2grow Number:  105874 of 127613


I am thinking of starting a Dividend Reinvestment Plan (DRIP) for my teenager with some of his money. I believe I would have to first get into the DRIP myself, then transfer to him (I doubt he can open his own). When a sale occurs, how do the taxes work? Do I account for any capital gain/loss on my taxes through the time I transferred to him, then the rest is on his tax return? (right now he doesn't have income and so does not fill out a tax return)

Thanks for any guidance,
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