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?