I have a brkg acct for my child but in my SSN. I nominee her on 1040 for DIVs. What will happen when I sell stock, how do I report cap gains as nominee so I'm not taxed?

To be clear, I do file 1099-DIVs to the IRS each year and "negate" the DIV income on my return as a nominee, and then she shows the DIV income on her return. This year will be the first year that she will incur Cap Gains so will receive a 1099-B. Can I do the same thing and report the 1099-B sale as a Nominee? The brokerage firm initially said that to have the reporting under her SSN, we need to liquidate all of the securities and incur large cap gains. She is not a minor. Thank you.

435

Level 15

Jul 15, 2021 1:59:18 PM

No you cannot nominate stock sales reported on a 1099-B... unless you switch the account to report the income under the child's SS# you are liable.

Level 15

Jul 22, 2021 5:28:07 AM

Talk to the brokerage firm about changing the account to her SSN. There's some question as to whether it was proper to even nominee the dividends. A brokerage account should not have been set up that way.

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I have a brkg acct for my child but in my SSN. I nominee her on 1040 for DIVs. What will happen when I sell stock, how do I report cap gains as nominee so I'm not taxed?