Anonymous
Anonymous asked in Business & FinanceInvesting · 1 decade ago

Transfer stock and purchase basis?

I have stock that will be automatically sold as a result of acquisition that will create a capital loss for me. Can I transfer the stock and my futurre loss to my brother? Or can he share it via a joint brokerage account?

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  • Anonymous
    1 decade ago
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    I am no expert but I would have to say that would not be possible. But here is something you may not have known. If you had had a capital gain in the stock you could have transferred to stock to your brother and the gain would have evaporated. Your brother would not have had the gain and neither would you. I do that trick with my sons all the time.

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  • 1 decade ago

    A brokerage joint account while having 2 owners and 2 authorized users only has 1 social security number associated with it, and that is the number of the person that will get the brokerage tax statements.

    You can then name yourself as a nominee of your brother and send him and the IRS a statement, but that gets extremely messy.

    Easiest thing would be to open up an account with your brother's SS# and then make a transfer to him. He would have to transfer back to you proceeds equal to your purchase price so that you would have neither loss or gain and so that he can establish a cost basis. If you have a zero cost transfer he can't take a loss since he didn't pay anything for the securities. Check with your broker and tax advisor on this to make sure.

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