Yours is a different scenario from what OP is proposing - you left the proceeds of the stock sales in your kids' UGMA/UTMA accounts.25 years ago, I did that several years in a row, gifting $600 in $0 basis stock (my dad had been gotten it for 1 cent a share from his employer, then they got bought, then went public) to each kid, then selling it, leaving it in kid’s UGTM accounts. (At that time, $600 was the limit for tax free income of that type per kid, I think.) As far as I know, it’s totally legal and a great idea.
I'm assuming the kids didn't gift the money back to you so you could avoid paying capital gains taxes, like the OP is proposing to arrange with his mother-in-law, children, nephews, etc.
OP can do what he wants, but I believe that inviting the IRS to investigate further into one's life than is strictly necessary falls into the, "Play stupid games, win stupid prizes" category.
Statistics: Posted by Raymond — Sun Nov 24, 2024 7:49 am — Replies 20 — Views 1219