If I’m added as a coowner to a savings account, is it a gift for Fed income tax purposes?
I don’t care about the issue of the interest on the savings. I care about knowing if by being named a co-owner, that the principle, or part of it, may be taxed as a gift.
If you, the co-owner, are not the spouse of the owner, then when you withdraw money from the account for your own personal use, it may be considered a gift from the owner.
As a gift from the owner, any gift taxes would be paid by the owner of the account, not the co-owner. The withdrawal for your personal use would have to total over $12,000 in one year to have any potential tax implications for the owner.
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