1350627
Will I trigger a wash sale if I sell stock YYY in my account for a loss and then purchase the the same stock YYY in a minor’s account within 30 days. Actually my child is 19 and a full time student but we support them.
Seems like I should be able to do this without triggering a wash since my losses cannot apply against any gains in the minor account as far as I know.
Thanks!
You'll need to sign in or create an account to connect with an expert.
Probably not. This is a gray area and it is ultimately your decision.
While it is not expressly stated that minors could not purchase stock within 30 days following a loss from the sale of the same stock, consider this guidance from IRS Publication 550: Investment Income and Expenses on page 57, middle column:
If you sell stock and your spouse or a corporation you control buys substantially identical stock, you also have a wash sale.
Especially if you are claiming your dependent on your tax return and the dependent has more than $2,200 of unearned income to report, requiring filing Form 8615 for the minor's unearned income, it would imply that identifying the transaction as a wash sale would be appropriate.
it is not a wash sale since your son is not a spouse or corporation.
If he's buying with the proceeds of your sale, you have made a gift.
Still have questions?
Questions are answered within a few hours on average.
Post a Question*Must create login to post
Ask questions and learn more about your taxes and finances.
Slowhand
New Member
erwinturner
New Member
atn888
Level 2
taxgirlmo
Returning Member
DA250
New Member