How do I enter capital gains for a a JTWROS asset that is not held by spouses? Thank you!

[sjrcpa · Accepted solution]

1/2 on each person's return

[TaxMonkey]

More complicated that you would expect, depends on they type of asset, who contributed the funds initially, and state law regarding severability, among other factors.

For example in a situation in which a child was added to a brokerage account of a parent, and the child had contributed no money nor made any withdrawals.  The parent would report all gains.

[anne]

This is land purchased in 2016 and sold in 2018.  From what I understand, I need to report the full amount fo gain on the return I am doing with an off-set for the amount that is attributed to the other individual.  I am not sure where to enter the off-set information within ProConnect.  Thank you!

[sjrcpa]

Why do you think you need to report the full amount on the return you are doing? If it was jointly owned the sale paperwork is in both owners' names.

[anne]

http://www.hackeraccounting.com/how-a-joint-bank-account-could-affect-your-taxes/ is representative of what I have found.  If this is incorrect, that would be great!  Thanks so much, Anne

[sjrcpa]

If you feel you must - record the entire land sale on Sch D/8949. Then do a second "sale" called Amount reported by Joint Owner that results in 1/2 the gain being subtracted

[George4Tacks]

@anne was there a 1099S issued with your SSN?

[George4Tacks]

I believe you would use Code O as your negative adjustment for the other half. https://twonline-18.taxwise.com/Help/WebHelp/Content/IRS%20Codes/English/Miscellaneous_Codes/Form_89...
For PTO https://accountants-community.intuit.com/articles/1777895-generating-form-8949-column-f-for-various-...

[sjrcpa]

Thanks. I forgot about that O.

[George4Tacks]

Oh my!

[sjrcpa]

:smile:

[anne]

Thank you so much!  Anne