John <
jms2l@yahoo.com> wrote:
Stuart O. Bronstein wrote:
Massachusetts is an equitable distribution state. Normally that
would mean that you each claim your own incomes on your
individual tax returns. It's not 50/50. The trust is transparent
for tax purposes so doesn't change that result.
I'm not sure what equitable distribution means outside of a
divorce. We're not getting divorced.
Does that mean 1099s for joint/trust accounts with my SSN are my
income and 1099s for joint/trust accounts with her SSN are her
income, and we each report our own W-2 income?
Or do you mean something else?
For the most part you're right, equitable distribution is really only
relevant with respect to divorce. But what it also means is that
it's not community property. When it's not community property, then
money earned by either of you goes on your personal tax forms, and
income earned on property that you own goes on the tax return of the
person who owns that property. Normally that is what is reported on
the 1099s, though that's not necessarily the case.
If you own something together, normally that would be reported on a
partnership return, though it's not necessarily required. If you own
something together and payment comes in under one person's 1099, then
you should issue a nominee 1099 showing how much of that income
should be reflected on the other spouse's tax return.
--
Stu
http://DownToEarthLawyer.com
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