Capital Gains and Losses
Questions and comments about tax rules for buying and selling stocks, mutual funds, real estate and other assets.
Joint Stock account, and not Married - How to file on tax return?
Posted by: greatday8, January 17, 2018 12:49AM
My X-wife and I opened a joint stock account in 2017. HER name is listed first and ME is listed second, as shown below.

Account name: HER & ME JT TEN

Account type: Joint Tenants WROS

How should the sales be reported on our tax returns?

Do we each report half the profit/lose from each sale on our respective tax returns?

Since SHE is listed first, can she report it all on her return?

She is remarried and files jointly and I am not married and file single.

Thanks for the help.

Frank

Re: Joint Stock account, and not Married - How to file on tax return?
Posted by: Drewremedy, January 17, 2018 01:48AM
I think it's two step...thenperson getting the 1099 fils and rhen whatever actalmqmounts the other person got, the first then nominates the correct one ncome or gain to them and the other reports it.

The IRS gets its info based n SSN on the 1099...and it best match what that person reports .

Not cool to play bracket shift games with an X ...keep it honest .

You do know that on a bad day one of you could clean out the whole account ...

Re: Joint Stock account, and not Married - How to file on tax return?
Posted by: Art, January 17, 2018 04:43AM
Here are two theories about this situation:

1. You have a partnership, and will end up re-titling the account as a Ptnrshp and the 1065 will throw off two Sch K-1s.

I think that is more messy than it needs to be and I certainly do not recommend it.


2. She will follow the procedures for a Nominee Distribution for her tax return. She reports the total income, then subtotals that, and for each type of income enters Nominee Distribution received for [you and your SSN] and totals the difference on her 1040.

She then issues you appropriate 1099s-
INT, DIV, B. Due date for that is Jan 31 2018.

I am sure you agree his is also very messy.


So what to do? I would try to unravel this into Separate accounts and do it quickly. And chose one of the above methods for 2017.

Re: Joint Stock account, and not Married - How to file on tax return?
Posted by: greatday8, January 28, 2018 06:48PM
Thanks for the replies and help.

The joint account will be closed and we will use separate accounts.




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