My son was given some stock for his 16th birthday. He recently decided to sell it and, for convenience, it was sold through my brokerage account. Since it will be 1099'ed to me, can I declare it as a nominee transaction and put it on his 2007 return rather than mine? There appears to me a couple of hundred dollars of difference in the amount of tax. Thanks Bill
If you have proof you were simply acting as nominee for him, then yes, you can nominee that back to him, and issue him a
1099-B (part of the nominee procedure.) But remember that if he is under age 18 (or under age 19 if his unearned income/total income ratio is too high, and that becomes age 23 if a full-time student) then he will use the Kiddie tax to calculate his tax. If he has to use Kiddie tax, the difference is only about $75 not $hundreds.BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.