Taxed twice on Capital Gains?

What is the name of your state?IL
My sister and I have purchased stock together. Her name is the only name on the stocks but I paid for 2/5 of the stock. I'm trying to figure out how I can legally take my share with out the same money being taxed twice. Whether she pays taxes on all the profits and then gives me my share or we split the profits and then I pay taxes on my share. Any advice?

[Snipes5]

It depends how much money you are talking about.

You could work it out that it was a loan, and she gives you back the stock as repayment, since her basis in the stock is only what she paid for it. If she gives it to you that way, it retains her basis.

Or, if the amount of money is substantial, she can give it to you $11,000 per year for as long as it takes for you to have your share.

I'm not sure what you mean about it being taxed twice.

It hasn't been taxed yet, it will be taxed when sold.

Snipes

[abezon]

If you have the deal in writing or can otherwise prove how much you paid, she can "nominee" 40% of the sales price to you. She reports 60% of the income & basis; you report 40% of the income & basis. If only 1 of you wants to sell, you are better off splitting the account into 2 accounts at the broker's, then one person sells his/her share. Be sure to keep documentation of the deal for at least 3 years after the last share of stock is sold.

You should also have the deal in writing in case 1 person dies: the broker account passes to whoever is listed as beneficiary automatically. If that's not you, you'd have to sue the beneficiary for the shares & good luck with that! For this reason, you might want to split the account now, or at least add your name as 40% owner tenant in common.