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Financial Planning / Tax Strategies


Subject:  Re: Tax Implications of JT TEN Stock Sales Date:  8/5/2005  2:14 AM
Author:  ptheland Number:  80264 of 132099

As others have pointed out, if your SSN is on the account, report the whole transaction, then back out your sister's portion (whether that's 1/2 or the whole thing if you only sell 1/2 the shares).

An alternative solution is to open a separate account at the broker with your sister. Put HER SSN on the account. Endorse the paper certificate as necessary and deposit the certificate in the account. Now instruct the broker to transfer 1/2 of the shares to YOUR account (or your joint account with your wife). Now your sister can sell the remaining shares (or not) and the reporting will go to her, leaving you out of the picture entirely.

If you REALLY wanted to go all out, open a third account at the brokerage in just your sister's name. Deposit the certificate into the joint account with your sister as before, then have the broker transfer 1/2 the shares to your account and 1/2 to hers. Now you've separated the shares as you wish you would have done back in the day. And each of you can do whatever you wish with your 1/2.

Another way to skin the cat is to use the company's transfer agent. Send them the paper certificate and ask them to split it into two certificates - one for each of you. The down side here is that would needlessly delay your ability to sell the shares.

--Peter <== thinking there's usually more than one option
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