topic If a joint owner of a stock account dies, does the surviving joint owner pay taxes before shares are sold? in Investors & landlords

If a joint owner of a stock account dies, does the surviving joint owner pay taxes before shares are sold?

jaynjude — Thu, 06 Jun 2019 09:03:55 GMT

My wife's father was buying shares in an energy company for many years and had named my wife as a joint owner on the account. He passed away recently and now my wife is the sole owner on the account. Dividends have always been reinvested in the company. Will any taxes be due before she starts selling shares?

A joint owner of a stock account does not pay any tax whe...

MinhT — Thu, 06 Jun 2019 09:03:57 GMT

A joint owner of a stock account does not pay any tax when the other owner dies. When your spouse sells stock from this account, she has to report capital gains or losses.

Dividends are taxable even when they are re-invested. Dividends are reported on form 1099-DIV issued by your stockbroker.