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I was thinking of investing some of my daugther college savings in the stock market. Mutual funds have yearly capital gains associated with them.

I guess the answer would depend on what type of account will this be. Will it be in your name or hers (UGMA or UTMA), a type of IRA (Roth, Traditional, Educational).

Does she pay the same longterm capital gains tax that I would if I invested it in my name

That depends on your tax bracket. The tax rate could be as low as 10%. There was a recent thread that may provide some answers for you here:


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