I am having a devil of a time trying to calculate kiddie tax on long-term capital gain income from the sale of stock. Form 8615 is still in draft stage, not sure if calculating correctly. Child (10) is dependent on parents' return. Has no other income of any kind, no interest, etc. So he is not claiming himself. Cap gain is $11,500. His standard ded is $900. I thought first $900 -- no tax, next $900 at child's rate, over $1,800 at parents' rate. Since it is LTCG, however, second $900 at child's rate would still be zero under new cap gains rules, correct? All cap gain over $1,800 would be @ 15% since parents' rate is 25%, correct?
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