Form 8615

Mar 18, 2007 3 Replies
K

I have to file form 8615 for my children and have a unique situation. I have a long term capital loss (greater than $3000) and my children have long term cap gains. When combing the parents income and the children's income and computing the children's tax at the parent's rate, is there a way to combine my entire loss with the children's gain? The worksheets seem not to provide for this. This has some benefits when comparing the tax at the children's rate versus the children's tax at the parent's incremental rate. Thanks



Ken



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F

You cannot offset the childrens' capital gains with your capital loss. Frederick Lorca

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H

If this is the conclusion you have come to, you have correctly read the instructions. Congratulations/

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L

If your children have capital gains, you cannot include their income on your return -- period. You may use form

8615 and include your childrens' income on your return only when they have just dividends and interest income. Any child that has a capital gain (or loss) must file his/her own return. Thus, you cannot combine your losses with their gains to reduce total taxes. Lanny K. Williams, CPA Nawarat, Williams & Co., Ltd. Income Tax Services for Expatriate Americans
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