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Showing posts with label college student. Show all posts
Showing posts with label college student. Show all posts

Sunday, November 27, 2011

Tax Question

AskTaxGuru.com Junior Member, feng, asked:

I am a 21 year old college student (dependent).
My parents invested my college savings in stocks. They have about 30,000 dollars left in shares of Apple (I am a senior at a public university)
They are in the 33% tax bracket.
Edit: I am in California Edit: I do not have a job (doing unpaid internship overseas)

Questions: What happens if they transfer the 28,000 dollars worth of stock into a brokerage account under my own name.

Effectively gifting the shares to me. They have a joint account so I should be safe under 28,000 dollars from gift tax.
The stock gained 7000 dollars so was bought with 21,000 dollars.
If I get the stock, will I have to pay kiddie tax on the 7000 if I do not sell the stock?
Will it benefit me if I keep the stock until I graduate, and get a job to be taxed at my own lower rate?

Thanks in advance!


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