Pursuing tax cases on frivolous grounds? You should know that the courts often decline "to refute arguments with somber reasoning and copious citation of precedent" for a variety of reasons, according to Crain v. Commissioner, 1984.
The kiddie tax is a set of laws designed to stop parents from moving assets to their children to avoid paying taxes. It applies to unearned income — that is, income that doesn't come from working and being employed.
What You Need to Know About Basis
First, let's start with what "basis" means. Your basis is usually what you paid for an asset. According to the IRS, a capital gain or loss is the difference between your basis and the amount you get when you sell an asset. So, if you sell an asset that is worth more than you paid for it, you will have to pay taxes on the gain.
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