However, the new Kiddie tax law extensions, under age 19 or
under age 23 for a full-time student, do not go into effect
until 2008, and OP states that the transaction takes place
in 2007.

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Bill Lentz <blentz[at]negatorygoodbuddy.prodigy.net> wrote:

- quote -

If you have proof you were simply acting as nominee for him,
then yes, you can nominee that back to him, and issue him a
1099-B (part of the nominee procedure.)

But remember that if he is under age 18 (or under age 19 if
his unearned income/total income ratio is too high, and that
becomes age 23 if a full-time student) then he will use the
Kiddie tax to calculate his tax. If he has to use Kiddie
tax, the difference is only about $75 not $hundreds.

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My son was given some stock for his 16th birthday. He
recently decided to sell it and, for convenience, it was
sold through my brokerage account. Since it will be 1099'ed
to me, can I declare it as a nominee transaction and put it
on his 2007 return rather than mine? There appears to me a
couple of hundred dollars of difference in the amount of
tax.

Thanks
Bill

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