is there any reason to save cost basis information on a small UGMA custodial account for my son worth about?

Question

$16,000 ? am i right to assume that i shouldnt be taxed on this as long as its under a certain size?

Answer 1

Yes, you should save it. You do not know what it will turn into if you hold the investment.

Answer 2

You should absolutely save it. While you may not be taxed on it, there is a fair chance that your son WILL be taxed on it, depending on when he sells it. Even if he isn't taxed on it, he will need to be able to prove the basis in case he is audited.

Further, you never know when the rules regarding taxation of children's earnings will change.