Gift tax exclusion
We had for the first time used the annual gift transfer to our son. We gave him a check and he has deposited it over 2 months ago.
Now he is thinking of investing in stocks and wants to open a joint account with me.
Is it ok for him to have a joint account with me or does this void the gift tax exclusion?
As long as the account is under his social security number and you both treat it as his, your being on the account "for convenience" should not be a problem.
If there are issues, if any of the money in that account or income generated from the account, comes back to you, the problem will more likely be an income tax issue more than a gift tax issue - if any of that money is gifted back to you, the IRS may want to charge you for income tax on income generated in the account rather than your son, if your tax bracket is higher.
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