Tax Question

[SpaceMountain]

Hey All:

I own 2 individual stocks that I want to sell from my portfolio at a profit.

These particular stocks in addition to a few others were transferred to my individual brokerage account earlier this year. (2007)

When the stocks were purchased some 6-7 years ago they were in a joint account with me listed as the joint owner but NOT the owner who pays the yearly dividend taxes. I file as a single person. (we did this for tax reasons at the time)

My question is, can I offset these capital gains next April when I file my taxes against the stocks that I sold at a LOSS at the beginning of THIS year?

Again, I want to emphasize that ALL of these equities were transferred to me at the beginning of 2007 but were purchased technically by another person (family member) several years ago under THEIR social security number. I am now the sole owner.

I hope this makes sense? Thanks in advance for any recommendations.

Space Mountain
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[superpicks]

The answer to your question is YES. You may offset any pasive gain to a pasive loss.

To offset capital gains you must first have capital losses.

 

[D2bets]

If they were purchased by another person and transferred to you, then the other person did one of two thing...they either a) sold the shares to you, or (b) gifted the shares to you. If sold, then your basis is the purchase price on the date of sale. If gifted, then you take the same basis that the person originally had ("carryover basis"). It sounds like they just gave the shares to you without compensation. In that case you would carryover the same basis and other treatment.