I was wondering that my dependant's capital gain or loss can be claimed as my gain or loss or should the capital gain or loss be realized through the seperate filing?
Thanks in advance.
If a Schedule D, line 1 or 8, transaction is involved, it must go on the dependent's return. If the only thing involved is mutual fund cap gain distributions and "Kiddie Tax" applies, you can elect to include the child's income on your return. See the 1040 instructions.
-- Phil Marti Clarksburg, MD
Capital gains and losses are reported on the tax return of the person realizing those gains and losses. This is true even for parents of a minor child.
You can claim your children's interest and dividends, but not their capital gains. If the gross proceeds were more than $850, they will have to file their own returns.
It can't.
It must.
Only if the dependent's income is all interest and dividends (and maybe capital gain distributions -- I haven't checked) do you have the option to include his income on your return. However, you will never be better off doing this even if you are able to. If there's an actual sale of securities, the dependent must file his own return.
-- Rich Carreiro snipped-for-privacy@animato.arlington.ma.us
Separate filing. You don't have a choice.
Ira Smilovitz
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