stock cashed Who files? Me or my son

[garrisons4]

What is the name of your state? Missouri

Here's my situation. My wife and I separated in Feb 04 but are filing jointly as we are still married. Unknown to me, my mother-in-law had purchased some stock in my son's name some time ago. When my wife and I separated she cashed it in and gave it to my wife. A few weeks ago, I was sent the forms and informed that I needed to claim it.
It is in my sons SSN with my mother-in-law listed as "Cust for". Neither my wife nor I are listed on it anywhere.
My mother-in-law stated that since my son is a minor (he's 15 years old), we have to claim it. It seems that since it is under his SSN, he would need to file it. ???
Who needs to file and what forms do I need to file in either case?

If it matters, the stock actually lost money. (original purchase price: $3095
price sold at: $2854.93)

Thanks for any help!! I actually tried to post this question earlier but was under the impression that it was a cd that was cashed, but now find it was actually stock.
I'm totally confused and afraid of making an error so any help is appreciated!

 

[Snipes5]

I could swear I already answered this question.

Your SON has to file a tax return (you do this for him, but it has HIS name on it, not yours).

You file form 1040, with the stock transaction listed on Schedule D.

Make sure on the 1040 that you do not list your son as claiming his own exemption, because you will still claim him on your tax return.

Snipes