You should be able to carryover the losses year after year until there are no more carryover losses. A capital loss from selling assets in a custodial account cannot be reported on the parents’ tax return. There’s a rule that allows parents to report the income of a child on their tax return in certain circumstances, but this option is available only when all the child’s income is from interest and dividends. If your child has capital gains or losses, all the child’s income (including interest and dividends) must be reported on a separate tax return for the child.
You can’t get around this rule by transferring the shares from the UGMA account to your own account before making a sale. Even if the transfer is allowed, you won’t be permitted to claim the loss when you sell the shares.
@Gavin53
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