Ugh…Kiddie Tax! Any ideas to avoid this?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:Your child made $25,000 through sheer luck and you're complaining about the tax bill? This is pretty much the definition of looking a gift horse in the mouth.

It wasn't sheer luck. OP said that the kid did the research himself and took the risk. If it was that easy everyone would be doing.

OP said the child owned stock in a company that was bought out by another company. That's not something you can research. The second word gets out that Company A *might* buy Company B, the stock price of Company B will shoot up instantaneously. Unless the kid had inside information, it was complete dumb luck.

Nope. It’s clear you don’t buy individual stocks and have no idea what you’re talking about. People buy stocks of companies all the time that MAY be potential buy out candidates. For example, this occurs quite often in the Pharma/Biotech sector where small R&D bio companies have very promising drugs that get approved by the FDA. But these small bios need a bigger commercial Pharma company to market, distribute, and sell the drug and so they look to get acquired (sometimes in an all cash deal, sometimes all stock, stock/cask, etc). Please stick to mutual funds PP so you don’t get hurt.

There are tens of thousands of biotech firms, the vast majority of which will never get bought out. Investment banks have armies of people trying to figure out which ones might get bought. So weird how a 17 year was able to figure it out on his own. Goldman needs to hire this kid. Also, because it's so hard to know which ones will get bought, most Wall Street people just buy XBI.

What makes you think that this kid isn't trying to learn the ropes right now?