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Copied from Accounting Today: Despite COVID-19, the Internal Revenue Service is continuing forward with moving 1099-MISC Box 7, “Non-Employee Compensation” to a new form, the 1099-NEC. This is effective starting this tax year, 2020, meaning that in January 2021, organizations will file this new form. The 1099-NEC is straightforward: Box 1 is for non-employee compensation and Box 4 is for federal withholding for that contract employee. To put it simply, income that the company used to report in 1099-MISC Box 7 will now be reported in 1099-NEC Box 1. State tax withheld, payer state ID number and state income is reported in Boxes 5, 6 and 7 on the 1099-NEC. ASC 842, IFRS 16, and GASB 87: The dramatic impact of the new lease accounting standards To comply companies and public entities will need to overhaul the information collected and how it is gathered and stored. SPONSOR CONTENT FROM And that's it: Those are the only boxes on the 1099-NEC. Who gets it According to the IRS, the people for whom an organization should use the new 1099-NEC are those with at least $600 in: Services performed by someone who is not an employee (including parts and materials) (Box 1); Cash payments for fish (or other aquatic life) that the company purchases from anyone engaged in the trade or business of catching fish (Box 1); Payments to an attorney (Box 1). The term "attorney" includes a law firm or other provider of legal services. Attorneys' fees of $600 or more paid in the course of the organization’s trade or business are reportable in Box 1 of Form 1099-NEC, under Section 6041A(a)(1); or, Each person from whom the company has withheld any federal income tax (report in Box 4) under the backup withholding rules, regardless of the amount of the payment. The new 1099-MISC All of the other income typically reported on a 1099-MISC will stay on that form, though Boxes 7 through 17 on the 1099-MISC have been shuffled. Box 1, “Rents,” and Box 3, “Other Income,” remain the same. More information on the MISC and NEC are on the IRS web site: www.irs.gov/instructions/i1099msc. Most accounting software likely does not yet support a "1099-NEC" flag for vendors, nor does it produce a 1099-NEC report. If a company has vendors that use 1099-MISC Boxes 1 or 3, they may want to consider inserting a “Display Name” flag such as "Vendor Name 1 - NEC" and "Vendor Name 2 - MISC," so that in January they can easily download the 1099-MISC CSV file and separate out the vendors who will go to the 1099-NEC. APIs that connect accounting software to 1099-NEC software may or may not be updated by January, so we suggest reaching out to the organization’s 1099 software tech support and ensuring that they have a plan for mapping vendors into the proper form. Other issues State requirements. Individual state filing requirements are as yet unknown. All of us in the 1099 world have our fingers crossed that the IRS will make the 1099-NEC part of the Combined Federal/State program. This decision is still in flux; and according to the IRS, will be made by late August. We anticipate new state 1099-NEC requirements arriving late in the year, making for a hectic January. Corrections for a prior-year 1099-MISC. So what if a company has to correct a Box 7 amount on a 2019 1099-MISC and the new 1099-MISC Box 7 no longer exists? The IRS says corrections to 1099-MISC box 7 for tax years 2019 and earlier will remain on the old 1099-MISC form. Due dates. The due date for 1099-NEC is Feb. 1, 2021, to both the IRS and to recipients. The new 1099-MISC due date is pushed back to March 31, 2021, for IRS e-filing, since it no longer contains Box 7. It is still due to recipients on Feb. 1, 2021.

Basis can never be negative. The loss in excess of basis is a carryover loss, not LTCG and not NOL, either. NOL would be determined on the 1040. Any distributions in excess of basis are LTCG.

Thank you for the input everyone! I appreciate it!

This is the route I'd take. It doesn't matter that she's living off the money, many kids get money every year from their parents and essentially live off of it. I do the taxes of a few of them. (If the siblings have spouses you can give $30k per year easily)

Oh they may really hate the sister, and worth it to get rid of her.

They may have thought they could take the $60,000 loss.

I think NY is the most aggressive, along with CA maybe! That settles it. NY resident. No DC-sourced income. Wow, the only one in the family with only one state this year. 2018 he moved from NJ to NY and then entered law school; the rest of his family has CT, NY, UT, and CO. Dad's still missing a W-2 and one of the trusts is missing a consolidated 1099, but now I'm one step closer to completing returns for this family. Anyone disagree with NY resident with no DC-sourced income? Love you all. Stay well.

A hectic January for us! That's become the new normal.

This post is kinda old but it helped me today! Thank you for noting where you found to input it. ATX needs to add the PATR to their list.

This is what I would set up. I would ask one of my siblings to gift some money to my father by paying the rent or part of it. I would ask my other sibling to gift money to my father for food. I would ask the other to pay for medical expenses. I doubt there will be much more money left for me and I would also welcome a gift from my siblings. My siblings can gift me money because they are not receiving anything in return... I am doing whatever I am doing for my father and he is enjoying the benefits of my care.

New York Form IT-2104 enables one to customize NY State and City (and Yonkers, etc.) withholdings so as, for instance, to declare oneself subject to the NYC tax on resident employees. ATX supports it.

How many siblings? If there are three, they can each gift $16000/yr to the mother and the daughter can administer it. If there are only 2 siblings, they can gift a total of $32K and the daughter can apply for IIHS through medicaid/medical. She would get about $12000/yr in non-taxable income. That would only leave $4000 taxable and surely there would be enough expenses to offset this.