How do I report losses from a shared investment account?

Q: I have an investment account (JTWROS) with my sister. We had some losses in 2003. What options do we have for reporting the loss on our separate tax returns? --Susan, Revere

The following answer was provided by Mark Misselbeck, CPA, Levine Katz Nannis & Solomon PC, Needham.

A: The IRS will look for the transactions to be reported on the return of the person whose Social Security Number appears on the account. That person would need to pick up the entire amount and "balance it off" with a second transaction identified as "Nominee ownership", then attach a schedule listing the other person on the account, their address and Social Security Number and show the elements of the transaction and the portion being reported by the other owner.