StanChan

Please advice on a capital gain tax question

My friend and I bought one thousand shares of stock using his brokerage account more than a year ago. The money for the purchase was placed into his account by both of us (50% from my friend and 50% from me). As of today, the value of the stocks has been increased by about 50%. My friend suggested that we sell the stock and split the profit.

Since the stock was purchased using his account, to settle the long term capital gain tax, following are some options that we are considering:

1) We will split the profit. I pay him the long term capital gain tax for my portion of the profit, and he will report 100% of the long term capital gain in his tax return.
2) We will split the profit. He will issue a 1099 to me to cover the long term capital gain tax for my portion of the profit, and he will report 100% of the long term capital gain in his tax return.
3) Each one of us report 50% of the long term capital gain in each of our tax returns.
4) He transfers my share of the stock into my brokerage account, and I will pay for the long term tax gain when I sell them in the future.

Are the options listed above ?legal?, and are there other options that we could consider? Since I have tons of long term capital loss and minimum income this year, which option would be best for my tax situation?

Please send your reply to NBD@UpBC.biz

Thank you in advance for your assistance!