I opened a joint tenancy investment account for investing in stocks with my girlfriend (life partner) in 2021.
If I understand the explanation below correctly; I can have her report all the tax loses to her 1040 ($4700) and I report no loses this year. She would also be able to carry forward $1700 in ST capital loses to 2022. Even though we split the dividend income 50/50.
Would we be able to change the allocation of gains or loses in 2022 and following years? She would still have the $1700 carry forward loss in 2022, so assuming we have gains in 2022, I can report all the gains myself. I would be able the use the standard deduction to offset our taxable stock gains.
In 2020 and many years prior, I was not required to even file a tax return. I live on S.S. and a personal Tax free disability income policy for life. My girlfriend still works making approx. $55K per year.
Do I understand this correctly? Any advice or suggestions much appreciated.
Thank you in advance for your assistance,
Melvin Berger
