Question
It's common for children to receive financial contributions from parents, and other relatives to help secure a child's financial future by funding investment accounts for
It's common for children to receive financial contributions from parents, and other relatives to help secure a child's financial future by funding investment accounts for thembut they come with tax implications that must be reported come April 15. In order to shift the taxation of dividend income from a parent to a child,
A.the child must meet the definition of a dependent.
B.the parent must transfer ownership of the stock to the child.
C.the parent must direct the corporation to pay the dividend to the child.
D.the parent can deposit the dividend in the child's bank account.
E.all of the above will result in shifting the taxation to the child.
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