If your dependent child under the age of 23 has unearned income - and capital gains are unearned income - they will pay tax based on your income tax rate.In your case, you mention the child is over 18, but has no income. Is the child your dependent? If so, you will save only a minor amount of taxes. The child will get the first $800 (or is it $850 - durn number changing every year - grrr!) tax free, and the next $800/850 at their rate, which is probably 5% for long term capital gains. The balance of the gain will be taxed at your rate.Thanks. Yes, he is my dependent and will be starting college in the Fall. The funds for college will come from various savings and assets and I'm just trying to figure out the most tax efficient way of raising the cash.~Stillwell
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