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Author: rc4me Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121592  
Subject: UGMA/UTMA deductions?? Date: 1/5/2000 10:40 AM
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I have a couple of UGMA/UTMA mutal fund (college) accounts with Fidelity set up for my boys. I understand the applicable tax rates for money earned in the accounts however my question..do I get a tax break on any of the monies I deposit into these accounts? What tax form?
Thanks.
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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 24470 of 121592
Subject: Re: UGMA/UTMA deductions?? Date: 1/5/2000 7:11 PM
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<<I have a couple of UGMA/UTMA mutal fund (college) accounts with Fidelity set up for my boys. I understand the applicable tax rates for money earned in the accounts however my question..do I get a tax break on any of the monies I deposit into these accounts?>>

Nope. The money (or stock or anything else that you might transfer into these accounts) are nothing more than gifts from you to them. Not taxable to them. Not deductible by you.

And as long as you don't gift more than $10k annually to any individual ($20k if you are married and "split" your gift) for any calendar year, you don't even have any gift tax issues to worry about.

You can read more about gift tax issues, UGMA/UTMA funds, income shifting, and the kiddie tax in the Taxes FAQ area. There are a number of articles that you might be interested in. I'd suggest that you take a visit.

TMF Taxes
Roy


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