Plus, seemingly innocuous withdrawals can cause tax complications if you’re not careful. Here’s a primer on dodging the tax bullets.
What are the income tax angles?
The tax rules are pretty straightforward if you and your spouse hold income-producing property such as a joint bank account. You simply report the annual income on your joint tax return.
But say that you’re married and file separately, or you own property with a non-spouse. In the usual situation, the income is split evenly between the co-owners.
On the other hand, if the funds in a joint account belong to just one of you, that person’s name and Social Security should be listed first on the account. State law will apply for commingled funds.
Example: You own a bank account, but name your child as a joint own...(register to read more)