So I have a UTMA account for my Daughter at Vanguard. For several years, I've been transferring funds between the S&P index and Total Market index funds while always staying under the standard deduction amount for a dependent ($950 for 2012). AFAIK, staying under that amount meant a return did not need to be filed for her.I recently discovered that, for 2012, she can have up to $1900 in "unearned" income without paying taxes, but I will have to file a return for her per form 8615: http://www.irs.gov/pub/irs-pdf/f8615.pdfMy question, are there any concerns with transferring between funds to take gains, increase the cost basis and reduce future taxes so long as I keep the unearned income below $1900?She is 12yo and has no other income.-murray
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