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No, Form 8615 is not filed if unearned income is less than $2,100.
Yes, it is necessary to file a 2016 tax return to preserve the capital loss carryover.
No, you can't wait until income exceed the 2016 capital loss to report the loss.
No, Form 8615 is not filed if unearned income is less than $2,100.
Yes, it is necessary to file a 2016 tax return to preserve the capital loss carryover.
No, you can't wait until income exceed the 2016 capital loss to report the loss.
It has been more than 3 years since our UGMA losses. How do I recover them? I may have carried it forward in my account, can I transfer it back to my son?
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.
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