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Pastimes : Children and Investing

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To: Early Out who wrote (5)11/2/1998 3:42:00 PM
From: Patricia Meaney  Read Replies (1) of 22
 
John,

In answer to your two questions:

I'm not an accountant so if there are any out there who might want to correct me please feel free to. The way I understand it is that with dividends you don't have to file a tax return as long as the combined amount is less than a specific amount (you mentioned $400 - I think it is more but I'm not sure). When it comes to capital gains, I think that regardless of the amount, you still have to file because the IRS is only informed of the sale. They have no way of knowing what the purchase price was so therefore they don't know the actual gain.
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