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You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > tax write off
Expert: Helen P. O`Planick, EA
Date: 9/29/2008
Subject: tax write off
Question
My 17 year old son owns(custodian account) what cost us $8,000.00 of Wachovia stock. It now is,of course, pretty much worthless.
He has inherited a large sum of cash($50,000) from a charitable trust set up by his great uncle.
My question is, can the income tax which he owes on inheritance be reduced by the loss from the stock value?
Answer
If you sell the stock at a loss (there are a lot of IFS right now), he can reduce capital gains from the trust by the stock loss.
If he has no gains from the trust, he can use up to $3K a year in losses until his losses are used up.
Helen, EA in PA
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