If i cashed out on my unified trust for minors account please help with capitol gains problems?

Hi, I am wondering if I qualify for the EIC.
I cashed out on a Unified Trust for Minors account with $5,000 of stock, that was not transferred to me properly (from 10 years ago). I have a child who is 9 years old and I am her sole provider. I otherwise qualify for the EIC.

Does this qualify as investment income that would disclude me from taking the EIC?

Thanks for answering my question...

If the gain exceeds $2,900 it kills the EIC. Sorry!

Your basis in the stocks is whatever the donor paid for them. If the difference between the basis and your net proceeds from the sale exceeds $2,900, the EIC is lost.

You figure the gain using Schedule D. The account custodian probably has the data on the original cost of the stocks.

Not sure how you figure it wasn't properly transferred to you. IF it was a formal UTMA account, the stocks were yours as soon as they were deposited to the account. The right to liquidate them is determined by the terms of the trust.

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