Bob Hoffman Posted March 3, 2008 Report Share Posted March 3, 2008 Hi, everyone. I am confused about the proper way to handle (report) the following situation: My client was among three siblings who inherited a brokerage account that included stock. I know the proper valuation of the stock issues as they were sold several months later (in 2007) for a loss. The problem is that my client went and registered the account in all three names as a joint account but used her ss#. Well, the broker has reported all of the proceeds to her and she (and I) wonder how to get the proper information to her siblings. It seems that they should all get the proportionate loss. Any thoughts would be appreciated. Quote Link to comment Share on other sites More sharing options...
Margaret CPA in OH Posted March 3, 2008 Report Share Posted March 3, 2008 I just completed a similar situation. I prepared nominee 1099INT and 1099DIV for the amounts that went to the siblings. Then when entering the divs, etc. on client's return, input the amount nominee'd out with that code. Quote Link to comment Share on other sites More sharing options...
zeke Posted March 3, 2008 Report Share Posted March 3, 2008 "as they were sold several months later (in 2007)" This would indicate that TP rec'd 1099-B reporting sales, not just int & div. Quote Link to comment Share on other sites More sharing options...
Maribeth Posted March 3, 2008 Report Share Posted March 3, 2008 I would keep it simple. Report the total sales price on the Schedule D; determine the basis needed in order to give your client 1/3 of the loss. Prepare a schedule for your client to give to her siblings that shows their 1/3 interest in each of the stock sales for them to use on their tax returns. Maribeth Quote Link to comment Share on other sites More sharing options...
Bob Hoffman Posted March 3, 2008 Author Report Share Posted March 3, 2008 I would keep it simple. Report the total sales price on the Schedule D; determine the basis needed in order to give your client 1/3 of the loss. Prepare a schedule for your client to give to her siblings that shows their 1/3 interest in each of the stock sales for them to use on their tax returns. Maribeth My client received only a 1099-B to report the sales. Are you suggesting that no official reporting be made to the siblings? Is there such a thing as a 1099-B nominee forms? Quote Link to comment Share on other sites More sharing options...
Maribeth Posted March 3, 2008 Report Share Posted March 3, 2008 My client received only a 1099-B to report the sales. Are you suggesting that no official reporting be made to the siblings? Is there such a thing as a 1099-B nominee forms? As to a 1099B nominee form, I have no idea if there is one. Does your client have to "officially" report to her siblings? I don't think so. Report the income appropriately on her return. Something as easy as listing the total sales price, total basis and total loss on one line. Then indicating on the next line "less loss attributable to SSN & SSN" would suffice. Then make sure that the siblings have the correct information to report on their returns. Maribeth Quote Link to comment Share on other sites More sharing options...
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