JustJason
Vice Admiral
- Joined
- Aug 27, 2007
- Messages
- 5,321
Okay, here's the situation. Fileing my taxes and need to know wether nor not I have to claim some stock I sold as income... it's tricky, and here is why.
I'm 32 right now.
Back when I was about 14 or 15, I recieved some stock valued at just under 10K as a gift, but it was more like a bribe, and at the time I didn't know about it. I didn't even find out about it until I was 18 or so.
This is the story on the stock. My grandfather started liquidating his estate about 10 years before he died, he had 3 children and wanted to split everything equally, and wanted to do by "gifting" money in the form of stock, to get around estate and other taxes.
Now this is where it get's messy and confusing.
My mother has 3 children (including myself). She has 2 brothers. 1 brother has 1 child, the other brother has 6 children.
What my grandfather, and mother and uncles decided to do was to give every child the initial gift of 10k, then every year after that, my grandfather would "gift" 10k in stock to each of his children, then another 10K to each grandchild, in turn each grandchild was required to "re-gift" that money back to their parent, or aunts an uncles.
So the uncle with 6 kids, those kids were gifting money to my mother and the other uncle with 1 kid so in the end each of the 3 children of my grandfather would have equal amounts of the estate.
Whew... hope you can follow that so far.
So essentially all of the grandchildren were "tax straws".
I don't know about the other grandchildren, but my parents never told me they were doing any of this.
All of the accounts in my name, all of the signing of documents, all of the signing of stocks certificates etc, was all done without my knowledge, and my signature was forged by my parents on everything until I was about 18 and I found out about the whole scheme.
After I found out, I blew up at everybody and refused to play along, (which screwed things up for everybody else big time) but that is for another story.
Over the years the number of shares as doubled (splits) and it's overall value has doubled. About 6 or 7 years ago, I sold some of the stock to help me pay for college. I do not recall if I recieved any kind of official tax form for that. This past year I sold some more of it. About 3 grand so not a huge number. This year I recieved a form 1099-B.
It clearly says on the form "This is important tax information and is being furnished to the IRS etc etc."
So my question is, is do I have to report this money as income? It technically was a gift 15 years ago that just gained some value. If I do have to report it, how to I report it as non-income? If I don't report it am I going to get the big screw via an audit from the IRS?
What do I do here? I really can't afford a CPA/Tax guy and i'm not taking my taxes to the sears/hr block monkeys.
Thanks all.
I'm 32 right now.
Back when I was about 14 or 15, I recieved some stock valued at just under 10K as a gift, but it was more like a bribe, and at the time I didn't know about it. I didn't even find out about it until I was 18 or so.
This is the story on the stock. My grandfather started liquidating his estate about 10 years before he died, he had 3 children and wanted to split everything equally, and wanted to do by "gifting" money in the form of stock, to get around estate and other taxes.
Now this is where it get's messy and confusing.
My mother has 3 children (including myself). She has 2 brothers. 1 brother has 1 child, the other brother has 6 children.
What my grandfather, and mother and uncles decided to do was to give every child the initial gift of 10k, then every year after that, my grandfather would "gift" 10k in stock to each of his children, then another 10K to each grandchild, in turn each grandchild was required to "re-gift" that money back to their parent, or aunts an uncles.
So the uncle with 6 kids, those kids were gifting money to my mother and the other uncle with 1 kid so in the end each of the 3 children of my grandfather would have equal amounts of the estate.
Whew... hope you can follow that so far.
So essentially all of the grandchildren were "tax straws".
I don't know about the other grandchildren, but my parents never told me they were doing any of this.
All of the accounts in my name, all of the signing of documents, all of the signing of stocks certificates etc, was all done without my knowledge, and my signature was forged by my parents on everything until I was about 18 and I found out about the whole scheme.
After I found out, I blew up at everybody and refused to play along, (which screwed things up for everybody else big time) but that is for another story.
Over the years the number of shares as doubled (splits) and it's overall value has doubled. About 6 or 7 years ago, I sold some of the stock to help me pay for college. I do not recall if I recieved any kind of official tax form for that. This past year I sold some more of it. About 3 grand so not a huge number. This year I recieved a form 1099-B.
It clearly says on the form "This is important tax information and is being furnished to the IRS etc etc."
So my question is, is do I have to report this money as income? It technically was a gift 15 years ago that just gained some value. If I do have to report it, how to I report it as non-income? If I don't report it am I going to get the big screw via an audit from the IRS?
What do I do here? I really can't afford a CPA/Tax guy and i'm not taking my taxes to the sears/hr block monkeys.
Thanks all.
