Tax Law (Questions About Taxes)/U.S. Tax Consequences

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Question
My wife and I have two accounts with the same brokerage. I account is a Joint Account with Right of Survivorship with my wife's SS#. The other account is a revocable family trust account with both of us named as joint trustors/trustees with my SS#.

We wish to transfer all stocks and cash in the JTWROS account to our family trust account. We are told we will not incur any U.S. taxes by one broker but another broker has said the transaction will incur a 1099B being sent to us. What is correct and will we incur any tax consequences? Thank you.

Answer
Frank,

Thank for your question.

It depends on how it is handled. If it is simply a transfer of the same stocks to a new brokerage account, it should not generate any tax consequences.

However, if they treat it as a sale of the stocks, then a 1099-B would be generated and you would have tax on the gain.

Hope this helps.

John Stancil, CPA  

Tax Law (Questions About Taxes)

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John Stancil, CPA

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I can answer questions on personal income taxes, partnerships, and some corporate income taxes. I can deal with some state tax questions. Limited gift and estate tax questions. I am also familiar with ministerial and church tax reporting issues. I am Professor Emeritus at Florida Southern College. Sales taxes and property taxes are state and local issues so I am not likely be be able to give you an in depth answer on those types of taxes. I have maintained a CPA practice, specializing in tax, for over 35 years. I am a member of the National Association of Tax Professionals, The Florida Insititute of CPA's, The NCPE Fellowship. In addition I am a Certified Mentor for SCORE. Visit my website at www.mybaldcpa.com. I also offer seminars and consultations to churches and clergy on their tax issues at www.churchtaxsolutions.com Also visit my blog, www.thetaxdocspot.com. I am listed on Tax Connections at https://www.taxconnections.com/profile/John-Stancil/12258973 Prepare and file your own taxes at www.1040stancilcpa.com

Experience

I hold a doctorate in Accounting, and am a CPA. My certifications of CIA, CFM, and CMA are inactive. I passed all certification examinations on the first attempt, and received honorable mention for my scores on the CIA exam. I have operated a CPA firm for over 37 years and have taught accounting and tax at the college level for over 35 years.

Organizations
FICPA, NATP, NCPE Fellowship, Lakeland Business Leaders

Publications
The CPA Journal, Florida CPA Today, Green Consumer, Green Business, Global Sustainability as a Business Imperative, Palmetto Review, NATP TaxPro Quarterly, Mustang Journal of Finance and Accounting.

Education/Credentials
DBA University of Memphis MBA University of Georgia BS in Accounting Mars Hill University

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