Invest Account

Forum|Forum|2 years ago
March 6, 2024
3 replies
37 views

I have an Investment account worth $X and I am thinking about creating another individual account for my wife and move half of that investment into the new account. We file our taxes jointly, how does this change impact our taxes. Thanks

Ask the Experts - MetLife III - Mar 2024

DaveF1006

Alumni - Intuit

It depends. Moving money into one investment account into another does not generate a taxable event. One exception is If your account that you transfer is a Traditional IRA and if you transfer it to a non-traditional IRA or another type of brokerage account, then the transfer is taxable.

Another possible exception is if your transfer is not a direct transfer. For an example, if you liquidate some the assets you hold at your current brokerage, receive a check, then walk across the street to open another brokerage account, you may have to pay capital gains taxes on the transfer because this is treated like a the sale of any securities in a taxable account (like an individual or joint trust account).

Do a direct transfer within the brokerage and this transfer will not be taxable unless you are transferring a non-traditional IRA.

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rangadas2016Author

Level 2

Thank you. What is considered non traditional account. My case is simple individual investment account after tax amount and general trading accounts.

DawnC

Employee Tax Expert

Non-traditional investments are real estate, artwork, collectibles, cryptocurrency, Roth IRA, etc. Transferring to and from a simple investment account is not a taxable event.

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