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Subject:  Re: Tax Implications of JT TEN Stock Sales Date:  8/6/2005  5:10 PM
Author:  Kurtv Number:  80281 of 132504

Thank you all for your responses.

Bill-
You make an excellent point that when selling jointly owned stock, each party is liable for reporting the gain and that Etrade is only fulfilling their reporting requirements for the sale on my 1099-B.
Your suggestion of reporting the full transaction on my return and then backing out my sister's portion sounds reasonable. I say her portion because I still haven't decided whether to sell any of my half just yet. Do I need to supply any documentation with my return to prove she got the money? I was planning to write her a check from my brokerage account after selling and make a notation that it was payment for her half of the stock.

Ira wrote-
You cannot deposit the shares into a joint account with your wife if the shares are held jointly with your sister.


The response from Etrade seemed to indicate we can, assuming the certificate is properly endorsed. I really would hate to go through the trouble of opening a new account only to make a couple transactions and then close it.

To complete the picture, you should issue a nominee Form 1099-B to your sister for her share of the sale.

Got it! And that answers my question on documenting the sale for both my sister and myself.

I plan to deposit the certificate into my existing account. If at that time Etrade decides they can't do that we will open a joint account and keep my SSN as the primary. That way I can be sure of how the transaction is handled. Besides, my sister doesn't have a computer and I will be the one to place the sell order.

Thanks again for all the insight and suggestions,
Kurt
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