topic Regarding 1099B - we sold stock from an account held with our children and they are paying the tax. Can I simply delete the 1099B since the tax will be paid by others? in Investors & landlords

Regarding 1099B - we sold stock from an account held with our children and they are paying the tax. Can I simply delete the 1099B since the tax will be paid by others?

normandin001 — Tue, 04 Jun 2019 21:06:39 GMT

If the 1099-B has been reported on your children's tax re...

MinhT — Tue, 04 Jun 2019 21:06:42 GMT

If the 1099-B has been reported on your children's tax returns, then you should delete it from yours.

That "held with our children" introduces a bit of stickyn...

TomYoung — Tue, 04 Jun 2019 21:06:43 GMT

That "held with our children" introduces a bit of stickyness. "We" sold stock from an account you own with your children? Who's Social Security Number is on that 1099-B. The IRS will attempt to "match" that 1099-B to somebody's income tax return and the Social Security Number is how that will be attempted.

Appreciate the feedback, Tom. While the paper copy of the...

normandin001 — Tue, 04 Jun 2019 21:06:45 GMT

Appreciate the feedback, Tom. While the paper copy of the 1099Bs have both our names on it (parent and one chlid), and both parent and child SSNs are on the account, my SSN is tagged on the 1099B. Is there a way to flag this so that the IRS knows that the account taxes are being paid by the child?

you can't reduce tax by putting the gains on your kid's t...

fanfare — Tue, 04 Jun 2019 21:06:46 GMT

you can't reduce tax by putting the gains on your kid's tax return.
The Kiddie tax prevents that.
The Kiddie tax is more onerous now.
It's probably cheaper to report the 1099 on your own tax return

if the gain is small never mind, the Kiddie tax won't apply but your tax will be small too.