gift to minors taxable at distribution?
I turned 18 in 2003 and received funds left to me under the gift to
minors act. what is my basis for schedule D? or do i use a different
form? i got a 1099 from the brokerage
2 Answers from Attorneys
Re: gift to minors taxable at distribution?
The receipt of the securities and money is not a taxable event.
If a security is sold the cost basis and acquisition date is derived from the purchase date and cost when the custodian bought the secrity.
The 1099 form is a report of income which you should include in your tax returns for 2003.
Re: gift to minors taxable at distribution?
Receipt of a gift is not reportable income (so no Schedule D, or any other income tax forms). If and when you sell the gift (stock or bonds), you have the same basis in the gift as the person who gave you the gift (carry-over basis). Speak with the giver's accountant or attorney.
If the value of the gift was greater than $11,000, then you may have 709 reporting requirements (gift tax reporting).
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