topic Kiddie Tax Question in Get your taxes done using TurboTax

Kiddie Tax Question

taxfiler123456 — Sat, 13 Mar 2021 22:46:33 GMT

Hello,

Here's the situation:

1 - Kids UTMA account was through a bank brokerage which divested the brokerage function

2 - All funds were in the bank S&P 500 fund

3 - Bank transferred the accounts to another provider

4 - The other provider stunk. I moved the accounts to Schwab

5 - The movement to Schwab liquidated the accounts, sent a check, which Schwab then invested into the Schwab S&P 500 fund

The liquidation resulted in a lot of capital gains. Is there any way to deal with the tax bite, or just stuck?

macuser_22 — Sat, 13 Mar 2021 22:54:09 GMT

You should have just had the fund transferred to Schwab that would not be taxable.

Unfortunately you seem to be stuck with the tax now.

taxfiler123456 — Sat, 13 Mar 2021 23:46:36 GMT

Yea unfortunately the tax issue wasn't on my mind when we moved it. Live and learn I guess. Thanks.