1099B UTMA accounts

[Possi]

Help! I've never see this before and am at a loss... I have a 1099b (3 of them for 3 kids) and it has gross proceeds. Under transaction I have "termination".

Is this reflected on the parent's return or should I do a child's return?

[Matt Sova]

Utma

The 1099-B should be issued in the childs name and SSN. You will have to get the basis and prepare a childs return if the 1099-B is greater than $950.

[Possi]

Thanks

They were all losses, but to prove that, I know I need to file the returns.

I appreciate the quick response. Panic attack avoided once again!!

ahhhhhhhhhhhh

[FEDUKE404]

What triggered this event?

Is this a regular UTMA investment account or perhaps a Coverdell?

( I never saw anything called "termination" )

Even if the "child" was no longer a "child" one would think the account would have instead been reclassified and/or transferred.

FE

[Possi]

Titled UTMA

All of the paperwork says UTMA. There are 3 accounts for children ages 12, 14 and 17.

I also have been given cost basis in each of these accounts showing losses.

At face value, it looks real easy, a regular Sch D, just that it needs to be done on individual tax returns for each child, as each "sale" or termination was in excess of $2800.

[FEDUKE404]

Job security via Sch D

All of the paperwork says UTMA. There are 3 accounts for children ages 12, 14 and 17.

I also have been given cost basis in each of these accounts showing losses.

At face value, it looks real easy, a regular Sch D, just that it needs to be done on individual tax returns for each child, as each "sale" or termination was in excess of $2800.

The whole thing sounds quite weird - are you at liberty to say the security/fund name?? And why were there "terminations" in the first place? (Also be wary of any DRIP issues!)

Since you probably will have unused Sch D losses, looks as if you will be filing annual returns just to keep the probable capital loss carryforwards active until otherwise used/offset. Mix in some potential kiddie tax issues for a decade or so, and you will be having continuing fun!

FE

[Possi]

Maybe they closed the accts?

Could this have been issued b/c they were disgusted with the losses and closed the accts?

I'm sure this cannot be claimed on the parent's return, but had to ask.... No?

[Burke]

Yes, and no.

[Possi]

'nuf said

Yes, and no.

You crack me up!!