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Joint TIC Stock Brokerage Account Tax Reporting?


How are Joint TIC Stock accounts reported to the IRS? I opened on a Joint TIC stock account with Fidelity with a business partner and contacted Fidelity on how profits would be reported to the IRS, assuming that a form showing 50% each would be given. But apparently that is not the case. Fidelity didn t really clarify how it would be reported, but said only one form would be sent. Just wondering if anybody has any experience on this. Thanks in advance.

1 Answer

  • 2 months ago

    Brokerage firms have a legal responsibility to provide their customers basic tax information regarding the taxable activity in their accounts.  The DO NOT have any responsibility to assist customers in filing their tax returns nor should they expose themselves to such liabilities.

    It is the clients responsibility for filing the forms.   Your account may be a TIC, but the brokerage firm has no  information as to what other "joint" account you may have, therefore they only provide regulatory agencies information that is soley on their books. 

    This is common practice in the financial industry so it's not only Fidelity.

    Source(s): from The Street
    • ...Show all comments
    • A nobody
      Lv 7
      2 months agoReport

      Brokers send IRS information (form 1099)- interest earned/paid; dividends credited to account; A file is sent indicating the proceeds of all sell info.  BUT such information is for the Tax ID number on the account, it's up to the taxpayer to tell IRS what % is theirs and who owns the remainder. 

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