How to report the stock gains separately?
Question:
Answer:
report it on the tax return of the person who's social security number is associated with the stock account. That's who the IRS will get the report of the stock sales - and they'll be looking for it on that person's account. Use 1040 long form, Schedule D.
It's kinda tough, even though you and him agreed to manager the fund together, only your name is on it.I would talk to a tax consultant, but looks like you may be stuck with the capital gains tax. I would tell your brother to throw in some money to cover the taxes you now owe. Go to the bank and put his name on the acct.
I'm not a tax consultant, but if your name is the one on the account, presumably your SSN is also on there. If you and your brother had capital gains or losses (sold stock from the account during the tax year) then it will have to be reported on YOUR taxes (your SSN, remember).
If you have to pay taxes on long or short term gains, I suggest that if your brother also benefited from those gains, you ask him to split the cost of the resulting tax since I assume he split the money earned.
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