Is it legal for husband & wife filing separately to each claim 50% of capital gains & looses from a joint investment account?

cfisher-sifadis — Sat, 10 Jan 2026 12:28:11 GMT

Our tax preparer divided the capital gains equally between my filing (married, filing separately) & my husband's (married, filing separately). The investments are held by both of us in a joint tenant account. We have now received a letter from the IRS that my husband didn't declare correctly. But I didn't any notification.

Re: Is it legal for husband & wife filing separately to each claim 50% of capital gains & looses from a joint investment account?

pk — Sat, 10 Jan 2026 18:21:04 GMT

@cfisher-sifadis , while it is not unusual to divide the income/gains/losses equally between the joint owners if they file MFS, it could create an issue if the tax information documents like 1099-B etc. are issued in both names but ONLE ONE SSN is used. Because the IRS income match program ( AURS) will see a mismatch and therefore issue a CP-2000. All you have to do is respond to the notice and explain that the income was recognized 50% by each MFS filer-- included copies of the relevant supporting documents. That should settle the issue.

Is there more I can do for you ?

topic Is it legal for husband & wife filing separately to each claim 50% of capital gains & looses from a joint investment account? in Investors & landlords

Is it legal for husband & wife filing separately to each claim 50% of capital gains & looses from a joint investment account?

Re: Is it legal for husband & wife filing separately to each claim 50% of capital gains & looses from a joint investment account?