I'm currently 17 and will be turning 18 in a month. I made money by freelancing and paid taxes in my name. However, when I wanted to invest in the stock market, I couldn't have an account in my name since I'm under 18.
The broker suggested me to have an account in my mother's name, and I can operate that.
So we did that, transferred money from my bank account to my mother's bank account and then invested it into the stock market. The entire brokerage account is in her name and officially, on-paper, the account is operated by her only. Also, from broker's POV, the money is of my mother's but in reality, it's mine since I transferred it to her account.
That's the case, I have two questions and I hope you could help me out:
- Should I keep everything going as it is or should I create an account on my name and transfer stocks into it?
- What's the tax scenario? Who is supposed to pay the 15% taxes, me or my mother, on the short-term profits that I've made?
UPDATE: I'm sorry, I forgot to mention that I'm from India. Also, I trust my mother (duh, obviously) and have no issues even if I have to end up giving that money to her. I'm just uncertain about who should pay the taxes and how should I proceed when I turn 18, the time when I could have my own trading account.