If you have a joint investment account who pays the tax? What happens when one of the owners passes away? Kevin and Clinton answer those questions in this episode of Financial 15.

Kevin and Clinton are with Becker Orr Wealth Management and are both are portfolio managers with Canaccord Genuity Wealth Management. Combined they have over 40 years of experience. In this episode they discuss:

0:00 Intro
1:00 Ongoing Tax
4:48 Tax Upon Death
6:15 What if you add a name?

Have a question or want to review your financial plan? Chat with us! Visit:

Joint Accounts, Who Pays The Tax? – Financial 15…(read more)

LEARN MORE ABOUT: IRA Accounts

CONVERTING IRA TO GOLD: Gold IRA Account

CONVERTING IRA TO SILVER: Silver IRA Account

REVEALED: Best Gold Backed IRA

Joint Accounts, Who Pays The Tax?

Joint accounts are a popular financial tool for couples, business partners, and family members who want to combine their finances into a single account. While joint accounts can be a convenient way to manage shared expenses and investments, they also raise important questions about tax liability.

When it comes to joint accounts, the general rule is that each account holder is responsible for their own taxes on the income generated by the account. This means that if one account holder earns interest or dividends from the joint account, they are responsible for reporting and paying taxes on that income. However, the specifics of tax liability in joint accounts can vary depending on the type of account and the laws in your jurisdiction.

For example, in the case of a joint bank account, the interest earned on the account is generally considered to be equally owned by both account holders. This means that the interest income should be split evenly between the account holders for tax reporting purposes. However, if one account holder has contributed more money to the account than the other, they may be entitled to a larger share of the interest income for tax purposes.

Similarly, in the case of joint investment accounts, the tax liability can be more complex. If one account holder is the primary contributor to the account and makes most of the investment decisions, they may be responsible for reporting and paying taxes on the investment income. On the other hand, if both account holders share equally in the decision-making and contributions to the account, they may also need to split the tax liability for any investment income.

It’s important for joint account holders to communicate openly about their tax obligations and to consult with a financial advisor or tax professional if they have any questions or concerns. Additionally, it’s a good idea to keep detailed records of all transactions and income generated by the joint account to simplify the tax reporting process.

In some cases, joint account holders may also need to consider the potential tax implications of transferring money or assets between the joint account and their individual accounts. For example, if one account holder wants to withdraw a large sum of money from the joint account, they may need to consider the tax implications of this transaction, especially if it involves selling investments or transferring ownership of assets.

Ultimately, the tax implications of joint accounts can be complex and may vary based on individual circumstances. For this reason, it’s important to seek professional advice and to stay informed about the tax laws and regulations that apply to joint accounts in your jurisdiction. By understanding your tax obligations and working together with your joint account holder, you can effectively manage your tax liability and ensure that you comply with all relevant laws and regulations.