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Author: hondochica Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121096  
Subject: Re: how to split a joint account Date: 3/13/2014 6:48 PM
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Thanks so much to all for taking the time to reply. I really appreciate your help!

So - first to recap and clarify: The acct was opened with $24k cash - half mine half sis. $$ were invested in various stocks. No stocks were sold, and no dividends reinvested - but we'll worry about dividends later.

So . . my sister can take all shares of stock whose cost basis totals $12k (original amt) and transfer to her own acct - no questions asked. I can gift all of my shares of stock at once, 'cuz the original cost basis is $12k - less than current $14k max, and we can be done with the whole thing!

Now, do I need to file any paperwork with anybody about gifting my $12k shares of stock? (aside from giving my sister the purchase paperwork).

OK - this got tricky: Ira said: "Hondochica needs to know the cost basis of the stocks transferred to sister because sister will use that cost basis and holding period to determine any gain if she sells the stock. She will use the market value on the date of the gift to determine any loss if she sells the stock." OK - I can't quite figure out what you're saying here. And I wrote this long attempt to clarify, and then googled 'gifted stock basis' and discovered . . I don't want to tackle this now. It doesn't matter. I have the original purchase paperwork and will deal with it later!! so . .. nevermind! ;-))))

Now. . . dividends . . which were cash deposits into the acct - no dividends used to repurchase stock. I doubt there is more than $2k of dividends in the account, perhaps I can just gift it all to my sister and still remain below the $14k for this year. OR do I have to figure out what dividends go with what shares when we 'split' the acct?


thanks - I hope I have not further complicated this.

Kelly
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