I have a Texas UGMA account that I established for my son to pay for some of college. He is in fact now not a minor, and I pulled out $3500 last year as a drop in the bucket for his over-priced education. In completing Schedule D, I have no idea what the "basis" is in the stock, and there is certainly no help from the Form 1099-B. And I also got 2 different 1099-DIVs (not sure why I got 2) and there is of course a "Total Capital Gains Distribution" number wheich as I understand would go on line 13 of th Part II of the Schedule D. Now, in this transaction I will show (on my son's return) $321 in "Total Capital Gain Distributions" on Schedule D. Why in the world do I need to show anything on line 8(f) in gain? And if so, who in the world do I calculate that figure? Thanks.
Re-Post
Apr 10, 2008
1 Replies
As you were told before, you don't have to find the basis. You have two options. The first and most popular one is to find the basis and deduct it from the proceeds received on the sale of stock, to determine taxable income on the sale.
Under the other option, though, you don't find the basis. Instead you just include the entire sale price of the stock in taxable income.
This goes on your son's return, by the way, not yours.
Stu
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