Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
cancel
Showing results for 
Search instead for 
Did you mean: 
GH12
Returning Member

Custodial Account

Hello, I was the recipient of a custodial account, but I decided best to create a joint account with my mother on it as an investment account. How do I claim this on my taxes? Treat it like a normal investment account?

2 Replies
JohnB5677
Expert Alumni

Custodial Account

Who gets the documentation on it (1099-DIV, 1099-INT, 1099-B).  It is often the first person listed on the account.  That is the person that should report it on their taxes.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
jtax
Level 9

Custodial Account

What do you mean "recipient?" Do you mean you were the custodian or guardian or conservator? for your mother?

 

Be careful with taking custodial money and putting it into a joint account. That probably not a good idea. Ask your attorney if that is permitted. Why? Because if your name is on the account personally and not as a custodian, the account is likely an asset of yours and your creditors could get it. usually you need to keep such assets out of your name unless you are giving the to the protected person. (E.g. UGMA/UTMA accounts go the a kid when they turn 18.) 

 

Who's money is it? You're or hers?

 

Who gets the 1099 doesn't have anything to do with who should report it. Yes, the person who gets it must report it (or the IRS computers won't be happy), but if they are merely a "nominee" they should subtract the other person(s) share and the other person should report that share on their returns.

 

See this previous answers about the details of TT and nominee distributions.

 

https://ttlc.intuit.com/community/taxes/discussion/how-to-report-nominee-income/00/566274

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Dynamic AdsDynamic Ads
Privacy Settings
v