any cpa's in the group & kids investments? (nklr)

[John Biccum]

Not a CPA, not a tax lawyer but have asked the same questions since I set up these accounts for my kids. Create an "in trust for (child's name) account.  These ITF accounts automatically become the exclusive property of the named child when they reach the age of majority in their state of residence.  Until the child reaches majority  you control the account. Kids will likely receive some income from the account (e.g. dividends) so MAY file tax returns to recapture the IRS withholding from the dividends. But since the child isn't likely to earn enough to HAVE to file a tax return they can skip it if they don't have enough withheld from their dividends to make filing the return worthwhile. My kids had jobs and received wages so filed tax returns and recaptured the taxes withheld from their dividends. Set them up for a "dividend reinvestment plan" or DRIP while you are at it. Their dividends will be paid in stock rather than cash. Doesn't change the tax implications or stop the withholding  but makes it easier for them to build up their portfolio over time.     From: DSN_KLR650@yahoogroups.com Sent: 6/ 10/ 2014 15:05 To: DSN_KLR650@yahoogroups.com Subject: [DSN_KLR650] Any CPA's in the group & kids investments? (NKLR)   Thinking of buying $500-$1000 in stock, for each of my grand children, in one of there favorite places. (Mcdonalds, Pizza hut etc??)  And wondering what legal obligations they will have, with the IRS, ETC.? 

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