FreddieFarkle <standenman[at]hotmail.com> wrote:

- quote -

As you were told before, you don't have to find the basis. You have
two options. The first and most popular one is to find the basis and
deduct it from the proceeds received on the sale of stock, to determine
taxable income on the sale.

Under the other option, though, you don't find the basis. Instead you
just include the entire sale price of the stock in taxable income.

This goes on your son's return, by the way, not yours.

Stu

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I have a Texas UGMA account that I established for my son to pay for
some
of college. He is in fact now not a minor, and I pulled out $3500
last year as a drop in the bucket for his over-priced education. In
completing Schedule D, I have no idea what the "basis" is in the
stock, and there is certainly no help from the Form 1099-B. And I
also got 2 different 1099-DIVs (not sure why I got 2) and there is
of
course a "Total Capital Gains Distribution" number wheich as I
understand would go on line 13 of th Part II of the Schedule D. Now,
in this transaction I will show (on my son's return) $321 in "Total
Capital Gain Distributions" on Schedule D. Why in the world do I
need
to show anything on line 8(f) in gain? And if so, who in the world
do
I calculate that figure? Thanks.

--

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >