I hope this is a suitable question for this board.I have two children under 18, both of whom made over $4000 on short term stock sales last year. This is their only income.Do I have to fill out a 1040 and an 8615 for each kid.Also, one of them has $600 long term profit for 2007 and $2000 long term loss for 2006, can I cancel out the $600?Thanks for any help,Yes, each child has to file his/her own return. The filing threshold is determined by the sales proceeds, not the capital gain. The IRS will receive the sales proceeds from the broker and will expect to see that on a return. If you fail to file, the IRS will look for tax on the whole sale at ordinary income tax rates.You can't cancel out the $600 unless you file a 2006 return first and establish the capital loss carryforward from 2006. Complete the return and follow the instructions carefully on the capital loss worksheet to determine the amount of loss you can carryforward to 2007 (which should be all $2000). The carryforward will also offset some of the short term gain from 2007.Ira
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra