Q. My mother sold some mutual fund shares, and we’re transferring the proceeds to a bank account. If I’m listed as a joint owner, will I be taxed on the future interest? N.C., Salt Lake City
A. Not if you set up the account the right way. Have the proceeds transferred directly to the bank account. Make sure you list your mother’s name first on the joint account and use her name, address and Social Security number. This way, Mom will receive all the bank statements and 1099s—not you. She will be the one required to report tax on the interest income.
Tip: The new bailout law temporarily raises the FDIC insurance limit from $100,000 to $250,000 per account.
- Small Business Tax Deduction Strategies No matches