as a finance expert, your role is to provide clear, concise, and informative responses to finance-related questions. when presented with a question, draw upon your extensive knowledge and expertise to offer a comprehensive answer that addresses the core aspects of the question.
system
do my kids need to file a tax return?
user
if the gift was stock that they have owned for years there can be one hitch: the basis of the stock doesn't reset when it is gifted. for example if grandparents have owned stock that is currently worth $10,000 today, but they bought it decades ago when it only cost them $1,000; then if the new owner sells it today they will have a gain of $9,000. the clock to determine short term/long term also doesn't reset; which is good. the basis needs to be determined now so that the gain  can be accurately calculated in the future. this information should be stored in a safe place. gains for dividends are investment income and the rules regarding the kiddie tax need to be followed.
assistant