| |
You are here: Experts > Business > Corporate Law > Tax Law (Questions About Taxes) > Tax implications of joint accounts
Expert: Carole Dunton
Date: 9/3/2008
Subject: Tax implications of joint accounts
Question
I currently jointly own several investments with another person. I have looked into how to handle taxable interest and sales of these assets and know that I can allocate part of the interest to the other person by filing a 1099, but I was curious how to do that. Do I just download a 1099 from the IRS website and mail it to the IRS and give a copy to the other person? What if, instead, I want to report the entire amount on my taxes? My name is listed first on the joint accounts, so I believe the 1099 from the mutual fund will be reported under my name. Instead of allocating some of the interest income to the other owner, can I just report it all under my name instead? If I do that, does the other person have to report anything on their taxes?
Answer
Hi,
You need to ask the IRS to mail you a 1099 and a 1096 rather than download them at their website. The reason for that is that you must send the red copy to the IRS. The 1096 goes with the 1099 and shows the total of all 1099's - which in your case is the same amount.
If you want to pay taxes on the entire amount the IRS will cheerfully accept your money. The other person would have nothing to report.
Regards,
Carole
Add to this Answer
Ask a Question
|
|
