Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 01-15-2015, 04:20 PM
Junior Member
 
Join Date: Jan 2015
Posts: 1
Removing child from joint account

I added an adult child's name onto a large bank account some years ago. I recently had second thoughts about this and now want to transfer all the money in that account to a new bank account (with the adult child's knowledge), so I would again be the only name on the account. My concern is, will the IRS question this transfer in some negative way when the transfer is reported by the old and new banks? Thank you for your opinions.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 01-15-2015, 09:52 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by richlorn View Post
I added an adult child's name onto a large bank account some years ago. I recently had second thoughts about this and now want to transfer all the money in that account to a new bank account (with the adult child's knowledge), so I would again be the only name on the account. My concern is, will the IRS question this transfer in some negative way when the transfer is reported by the old and new banks? Thank you for your opinions.
I donot think so. you contributed 100% to the account and your son made no contribution. this is ok, but you need a letter signed by both of you.for some banks, that letter would not be satisfactory to remove the child’s name from the account. they supply a form that has to be completed and signed by both of you before they can complete a transfer into a sole named account. I guess you need to contact the bank.


aslongasit was after tax dollars when it was transferred to the acct in the adult child’s name,I mean joint acct, Interest on THE CHILD;’s accounts is taxable.however, you did not have to file form 709 even if the amount was $14k for 2014.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Gift tax issues on joint bank account ? jshtaxqs Miscellaneous 1 09-12-2014 07:26 AM
If same-sex spouses (who file using the married filing separately status) have a child, which parent may claim the child as a dependent TaxGuru For 2013 0 02-10-2014 06:10 PM
Divorce decree says husband can claim child as dependant - child turned 18, now wife says she is claiming son - Help. MacieRayne Divorce Tax Issues 2 02-07-2014 01:03 PM
MFS: mortgage in spouse's name; payments via joint account; mortgage interest / real estate deduction options ohjustbob Itemized Deductions 1 03-08-2011 01:08 AM
Capital Gains & Losses for Child Account Larson2000 Capital Gains 0 03-28-2010 06:08 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.