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Author: GoldenFull Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121061  
Subject: Capital gain and Kiddie tax Date: 12/8/1998 10:19 AM
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My 12-year-old son has more than $4000 in capital gains this year. I understand that the first $700 will be tax-free. Then the next $700 (?) will be taxed at his rate of 15%, and then the rest will be taxed at the highest rate we are paying. How do we take advantage of paying a lower rate when some of the gain is of long-term ? Since I don't have all the forms in yet, I can only guess that our tax rate will be right at the border line between 28% and the one level up. Therefore, I assume that the "overflow" from my son's captial gains will be taxed at that rate. But wouldn't it be unfair if those gains are of long-term nature when people can pay either 10% or 20% rate? Thanks to anyone who can answer.
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