swsop
05-30-2006, 10:18 AM
From My Retirement & Financial Planning Report
Did you pay too much tax on investment income, when you filed
your 2005 return? Shifting some of that income to your children
can be a tax-saver.
* In 2006, children under age 14 can have up to $850 in
investment income, tax-free.
* For such children, the next $850 will be taxed no higher than
10 percent Any income from stock dividends or long-term capital
gains will be taxed at only 5 percent
* Over $1,700 in investment income, tax will be owed at the
parent's rate.
* Children 14 or older can have as much as $30,000 in taxable
income this year, taxed no higher than 15 percent.
If you shift your investments to your kids, the tax savings may
be considerable. However, holding assets will reduce your child's
chances for need-based college aid. In addition, any investments
they still hold when they come of age (at 21, in most states)
will be theirs to spend, if they wish.
swsop
Did you pay too much tax on investment income, when you filed
your 2005 return? Shifting some of that income to your children
can be a tax-saver.
* In 2006, children under age 14 can have up to $850 in
investment income, tax-free.
* For such children, the next $850 will be taxed no higher than
10 percent Any income from stock dividends or long-term capital
gains will be taxed at only 5 percent
* Over $1,700 in investment income, tax will be owed at the
parent's rate.
* Children 14 or older can have as much as $30,000 in taxable
income this year, taxed no higher than 15 percent.
If you shift your investments to your kids, the tax savings may
be considerable. However, holding assets will reduce your child's
chances for need-based college aid. In addition, any investments
they still hold when they come of age (at 21, in most states)
will be theirs to spend, if they wish.
swsop