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Hello,

We have a situation where my 17 year old son has stock losses (we won't go into our foolish investments) which we would like to take the most advantage of in future years. Hopefully we will at some point have gains to offset. The problem I see right now is that he has no taxable income. I would like to carry the losses forward - but not this year but in future years when we can actually reduce the taxable income. Any ideas?

One other note. Last year I began filing separate income tax forms for my son so that his gains would not be added to mine. I don't know if it is possible to file his with mine again due to age etc. But in this case, at least his losses would be comming off of actual income.

Thanks, Bill
charniw@diebold.com
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Bill,

For this year's stock losses, file Form 1040 with Schedule D. If he can't use the losses this year because he doesn't have enough income, there is a worksheet to fill out which will allow him to carry the losses forward until such time that he can use them.

As to your past filing practices... You may want to amend your returns for the past three years. You can never include your son's gains or losses on your return. Under certain circumstances, you can include a minor's dividend and interest income on your return using Form 8814, but these only apply to a minor under age 14. Your son should have been filing his own returns (if he had sufficient income or needed to establish carryovers).

Ira
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Ira,

Thanks for the information. I did go and get those forms today. As for previous filings I think we are ok. I have been filing a separate return for him since he was 14.

Thanks,
Bill
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