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Subject:  Re: Why Not Take Gains in UTMA? Date:  2/9/2013  8:30 AM
Author:  MurrayS Number:  117702 of 129771


There's probably some other kinds of income you could include in that list, but they would be far less common than those three.

Thanks. I confirmed this by taking a closer look at the Form 1040, Line 44 "Qualified Dividends and Capital Gain Tax Worksheet"; indeed, you add qualified dividends and long term gains and subtract that from the taxable income and, if less than zero, you pay not tax in this case.

So back to my original question, is there any good reason to not shift between funds in my daughter's UTMA to take long term gains? This appears to be a good strategy to reduce future taxable income by 10's of thousands. Other than filing another simple tax return, it seems like a no brainer.

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