What is the tax treatment for capital gains from a joint trading account?

3 Comments

1. Bostonian In MO says:

   January 31, 2010 at 4:25 pm

   You take your proportional share of any gains or losses.

   Note that there are special reporting requirements since there is a beneficial interest and only one SSN will be on the Forms 1099 that you receive from the broker.
2. ninasgramma says:

   January 31, 2010 at 4:25 pm

   Figure the cash value of the initial investments by both accountholders. Take your gains or losses in the same proportions.

   Just because two names are on the account does not mean that you split the gains and losses evenly. If the entire invesment is from only one person, only that person takes the gains/losses.
3. tro says:

   January 31, 2010 at 4:25 pm

   whose SS# is on the 1099?
   that is the one responsible for the taxes that might be due