Comments on: What are the tax implications for spouses that purchase stock in a private corporation? http://www.moneysnatchers.com/investing/what-are-the-tax-implications-for-spouses-that-purchase-stock-in-a-private-corporation/ Money Snatchers Finance Blog Thu, 10 Dec 2009 09:16:56 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: muncie birder http://www.moneysnatchers.com/investing/what-are-the-tax-implications-for-spouses-that-purchase-stock-in-a-private-corporation/comment-page-1/#comment-89 muncie birder Sun, 05 Oct 2008 22:11:48 +0000 http://www.moneysnatchers.com/investing/what-are-the-tax-implications-for-spouses-that-purchase-stock-in-a-private-corporation/#comment-89 The tax implications occur on the death of one of the spouces. If both names are on the certificate, the shares are not considered part of the estate provided they are issued as joint tenents with rights of survivorship. The shares immediately belong to the survivor. However, taxes may be due on the half that was transfered over if the estate is large. The tax implications occur on the death of one of the spouces. If both names are on the certificate, the shares are not considered part of the estate provided they are issued as joint tenents with rights of survivorship. The shares immediately belong to the survivor. However, taxes may be due on the half that was transfered over if the estate is large.

]]> By: Flyboy http://www.moneysnatchers.com/investing/what-are-the-tax-implications-for-spouses-that-purchase-stock-in-a-private-corporation/comment-page-1/#comment-88 Flyboy Sat, 04 Oct 2008 17:02:31 +0000 http://www.moneysnatchers.com/investing/what-are-the-tax-implications-for-spouses-that-purchase-stock-in-a-private-corporation/#comment-88 There is little, if any, difference in the tax ramifications. In the first place buying stock creates no taxable event - it simply establishes the cost basis, which is subtracted from the selling price to determine the capital gain. The question has much more to do with ownership: If it is in his name only then you won't get the stock if he dies it except by will. If it is in both names as joint owners with the right of survivorship then the surviving spouse owns the stock and it does not have to pass via a will through probate. The only reason I can think of to put it in his name is if it pays a dividend (which it probably does not) and you are the big income earner and you file separately. There is little, if any, difference in the tax ramifications. In the first place buying stock creates no taxable event – it simply establishes the cost basis, which is subtracted from the selling price to determine the capital gain. The question has much more to do with ownership: If it is in his name only then you won’t get the stock if he dies it except by will. If it is in both names as joint owners with the right of survivorship then the surviving spouse owns the stock and it does not have to pass via a will through probate.

The only reason I can think of to put it in his name is if it pays a dividend (which it probably does not) and you are the big income earner and you file separately.

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