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Capital gains tax scam?

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Junior Member
What is the name of your state? CO

My friend gives 11k of stock to his infant child. The "child" then sell the stock and pays a very low capital gains rate. This sounds too good to be true. Is it a scam or is it legit?



Senior Member
What do you mean, "very low capital gains rate"? They are low for everyone, 5% and 15%.

Also, a child under 14 selling that much in stock could very well get socked with AMT.

Nothing is ever as easy as it looks.


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