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[[My mom is my dependant. She is not working and should fall into the 15% bracket. She and me
have our own individual investment accounts at the same investment brokerage firm. She uses her
own saving to invest and bought one stock at $43 in July 98. Now the stock price dropped to
$19. I wonder which way can help me to save tax:

A) She gifts the stock to me and let me sell
them by Dec 98.]]

This does you no good. The loss would be "lost" forever, since you would (very likely) have to retain the FMV of the shares as your basis. You would have no gain or loss, and your mom would have no loss at all.

[[ B) She sells her own stock by year end. ]]

That would certainly secure the loss. But since she is your dependent, by definition her income is very, very limited anyway. So why should she need losses? As you dependent, she is limited to only $2,500 in gross income per year...on which she'll pay very little (if no) taxes whatsoever.

[[C) I buy the same amount of shares for
her in my own account and then she sells her stocks in her account. ]]

But what does that really accomplish. It will certainly generate her a tax loss, but then you get the stock (it is no longer hers). Why would you want to do that.

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