Client has investment accounts in the name of her daughter as custodian for her grandaughter under UTMA. 1099B SSN is grandaughter's and gross proceeds are 8,800 and net capital gain is 200. Question: for filing purposes, isn't the gross proceeds the determining factor on who must file or is it the net capital gain and if so, whose 1040 is it reported on? thanks.
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Custodial Account
For a custodial account, the common practice is to issue the 1099-B with the child's social security number. If this is how it was done, then the child must file a return to report the gain or loss.
You are correct that the gross income is what drives the filing requirement, at least in this case.Burton M. Koss
koss@usakoss.net
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The map is not the territory...
and the instruction book is not the process.
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