cap gains on a UTMA

[jhm412]

Who pays the kidde tax on capital gains on a UTMA,  the custodian on the account or the parent claiming the child as a dependent?

[ColeenD3]

The child. It is the child's tax return. Use Form 8615 to figure the child's tax on unearned income over $2,200. Tax Topic 553

While the IRS doesn't care who actually pays it, the parent may qualify to include the child's income on their own personal return.

[Hal_Al]

Q. Who pays the kiddie tax on capital gains on a UTMA,  the custodian on the account or the parent claiming the child as a dependent?

A.  Neither. The child pays the tax, and has to file his own tax return, if the amount is more than $1100.

There's one possible exception.  If the capital gain is not from the sale of securities, but only a capital gain distribution from box 2a of a form 1099-Div, there is a provision for entering it on the parent's return, using form 8814. Enter at Less common income / Child's income.
But, it is usually best for him to file a separate return, as qualified dividends and capital gain distributions could be taxed at a higher rate on the parent's return.