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Deductions & credits
Nowhere. There is no such thing as "holding in you name". If in your name and SSN then it is YOUR stock. When sold you must pay the tax. If capital gains and dividends each year, you must pay the tax. If you give it to her and transfer it to her name then it is a gift that retains your cost basis. If over $15,000 in value you must file a form 709 gift tax return.
That is why "custodial accounts" exist in almost any financial institution. The account and funds are in the child's name and SSN as owner, with the custodian (you) having control until the child becomes an adult. Then there are no tax consequences for you and most taxable dividends would probably not result in any tax for her.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
March 14, 2021
9:04 AM
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