Kiddie Tax on LT Cap gains

This small article from Kiplinger answers your question.

"Long-term gains and qualified dividends are taxed at 0% when income (including the gains and dividends) is under $2,600 and 20% when income exceeds $12,700. In between those amounts, the rate is 15%. Also, note that for kiddie tax purposes, the 3.8% surtax on net investment income hits income over $12,700."

And the question remains, since the money is being transferred to my account to pay the tuition, would I run afoul of the IRS if we transferred stock, and took the cap gain under my name?

The college account wasn't meant to be a tax dodge, for 19 years, I knew the gains were taxed under my rate. Seems crazy that I got this far only to find a 20% potential rate, if read this correctly. Given the time, nearly 2/3 of the value is gains.

IMHO, I see no reason why a child who has reached the age of majority can not make gifts to parents even if that adult child is still a dependent for tax purposes. However, somewhere in the back of mind, I recall that the holding period for property that is gifted between related parties starts on the date of the gift. I could be wrong.

Thanks.

implies cost basis (and purchase date) follow the gift. One can't gift a loss, though. If the stock is worth less than the cost, it shouldn't be gifted.