Kiddie tax and the new tax law

I have a seven grandchildren who are all dependents on their parents' return, so they come under the Kiddie Tax rules. To put money away for their college, I gift highly-appreciated stock that I bought 30+ years ago. What is the maximum long-term capital gain that they can have and still pay no federal income tax. I think it's somewhere between $2500 and $5000, but I'd like an exact figure and itemization. For example, if their sole income is long-term capital gain (or qualifying dividends), do they get a standard deduction, or is there no standard deduction without earned income?

Reply to
NadCixelsyd
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The Kiddie Tax now uses Trust Rates rather than the parent's rates. The following site has the Trust rate table for ordinary income and the table for investment income. As an example, the first $2600 of investment income is at 0% and the 20% max CG rate kicks in at $12,701.

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The std deduction for a dependent is the greater of $1050 or earned income plus $350 and can not exceed $12000.

Reply to
Alan

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