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Financial Planning / Tax Strategies


Subject:  Re: Custodial Account/Capital Gain Date:  9/27/2012  11:13 AM
Author:  ORA100 Number:  116679 of 127616

Peter and Bill - Thanks for the reply. So for my example I generated LTCG of $6439.62 and STCG of $232.71. In addition he has a Capital Loss Carryover of $610. So I asume the capital loss of $610 will decrease the LTCG to $5829.62 and have the STCG of $232.71. Would these be combined for a Capital Gain of $6062.33? The first 950 is his standard deduction which reduces the CG to 5112.33. The next 950 is taxed at the childs rate - is that 0% or 10%? That reduces the Capital Gain to 4162.33 Would this then be taxed at the parents capital gain rate - either 0% if the parents taxable income is less than 70,700 or 15% if the parents taxable income is over 70,700 or a combination of 0% for part and 15% for part if it takes them over 70,700?

Thanks for the great help.

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