I have a brokerage account (UTMA) for our 4 year old - currently has about $8k in it. It has $600 of unrealized gains in VTSAX. I was going to sell it and then buy right back or exchange to VFIAX then exchange back to VTSAX relatively soon.
Just to make sure I do this right, this account is her only income- last year it produced about $115 in dividends that were re-invested. As long as her unearned income is less than $1250 (this was in 2023, I assume 2024 will be the same or similar) - I do not have to do anything in regards to taxes and this income is tax free for her and then resets the tax basis at the higher buy-back amount?
Cheers
DP
Just to make sure I do this right, this account is her only income- last year it produced about $115 in dividends that were re-invested. As long as her unearned income is less than $1250 (this was in 2023, I assume 2024 will be the same or similar) - I do not have to do anything in regards to taxes and this income is tax free for her and then resets the tax basis at the higher buy-back amount?
Cheers
DP
Statistics: Posted by dred pirate — Tue Jan 30, 2024 4:27 pm — Replies 6 — Views 389