Capital gains/losses carryover

[gman1981]

I had capital losses from 2023.

In 2024, i opened a custodial investment account for my child and have capital gains. I believe there are laws on how to submit taxes for a unearned income for a child and my kid meet all that criteria. Therefore i will be filing the taxes with my tax return. My question is, can i use my personal capital losses carryover from 2023 to offset the custodial account capital gains?

[DianeW777]

It depends. If your child has capital gains that were not received through dividends, such as qualified dividends, then you would not be allowed to report the income on your tax return. Only interest and dividends can be included on your tax return with Form 8814.

• Topic 553 - Kiddie Tax  (Form 8814 is only if your child has unearned income).

If the capital gains is coming through dividends, then you can include the income on your tax return.  The tax on your child's income will be added to your tax on your return as if it was on the child's return. Your capital loss will not be affected by your child's capital gains.