mithff33[at]aol.com (Herb Smith) wrote:
- quote -

Sorry, I misread what had been stated.

*Dan Evans
*Author of the Tax Protester FAQ
*http://evans-legal.com/dan/tpfaq.html

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Dan Evans <dan[at]evans-legal.com> wrote:
- quote -

If the taxes (if any are due) are paid from the UGMA/UTMA
account, there is NO GIFT involved. The kid is paying his
taxes with his money.

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duraybito[at]go.com (Peter) wrote:

- quote -

Yes, but it will be considered to be a gift to your children.

*Dan Evans
*"One is not superior merely because one
*sees the world as odious."
*Francios Rene de Chateaubriand (1768-1848).

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sduraybito[at]go.com (Peter) wrote:

- quote -

How much?

Are you aware that the first $750 (or whatever it is now) is tax free?

I have an UGMA for my daughter, and have always come in
under that limit. If you're over it, I expect that you could
pay taxes out of the account, but I don't know how the
logistics would work.

-Jim

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sduraybito[at]go.com (Peter) wrote:

- quote -

The usual, and far simpler, approach -- if any tax at all is
due on the kids' accounts -- is to pay the taxes out of
pocket. Remember that the kids have a standard deduction of
$750 each unless they also have earned income.

--
Chris Green

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Peter wrote:

- quote -

You can write a check to pay your kid's taxes, it is either
a gift or support. Unless you are dealing with big bucks I
would not think about alternatives.

--
Frederick E. Jorden http://Tax-Accounting-Payroll.com
7825 Midlothian Tpk - 207 Richmond, VA 23235-5247
EMAIL knowtax[at]bigfoot.com
(804) 320-6210 FAX (804) 320-6211

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My kids' UGMA accounts at a mutual fund earned dividends and
capital gains last year. Can I pay the income tax due from
money in the accounts? I don't think I can get the mutual
fund to cut a check to the IRS. Do I have them cut a check
to "me as custodian for my kid?" How is that check
negotiable? Can I just flow that through my personal
checking account?

Peter

P.S., I've surfed around a bit for this - am I the only one
with this "problem?"

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