BulldogTom Posted February 14, 2023 Report Share Posted February 14, 2023 TP passed with a couple hundred shares of stock remaining in his brokerage account (active trader - 58 pages of trades). Brokerage account is part of revocable trust. Daughter is Trustee. She sells remaining shares in account after death because she fears the price of the shares will drop. She did this before she got a new Tax ID number for the trust. Transaction is on the 1099B with all the other transactions from the shareholder under the Decedent's SS#. She told the broker when she did it that the TP had passed, so the broker stepped up the basis on the 1099B. It is not a large gain. How do I report this in ATX? Is there some way to "Nominee" the transaction from the final 1040 to the 1041? Or do I report it as is on the 1099B and back it out with an explanation on the 8949? Thanks Tom Longview, TX Quote Link to comment Share on other sites More sharing options...
Sara EA Posted February 14, 2023 Report Share Posted February 14, 2023 Enter the 1099B as usual. For the sales that occurred after death, start another line and put "IRD reported by {estate EIN}." Then enter the after-death amounts as a negative number. Do the same for any interest or divs paid after death. Be sure to include those amounts on the 1041 with the line reading "IRD reported to {decedent SS#}." In essence, you're reporting the 1099B amounts to match the IRS records, then backing out the amounts that belong to trust. You will have to comb those 68 pages for before and after transactions, so charge accordingly! 4 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 14, 2023 Author Report Share Posted February 14, 2023 8949 Input sheet, box f. Rec'd 1099-B or 1099-S as nominee. Adjusts the gain and puts the transaction on Schedule D. Pretty slick. Tom Longview, TX 3 Quote Link to comment Share on other sites More sharing options...
Max W Posted February 14, 2023 Report Share Posted February 14, 2023 Form 1099-S is for Real Estate sales. Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted February 15, 2023 Author Report Share Posted February 15, 2023 4 hours ago, Max W said: Form 1099-S is for Real Estate sales. I know. What I wrote was what pops up in the software when you click the dropdown menu in the 8949 box f. Tom Longview, TX 1 Quote Link to comment Share on other sites More sharing options...
Sara EA Posted February 15, 2023 Report Share Posted February 15, 2023 The problem with using the nominee route is that you have to issue 1099s to the nominee. 2 Quote Link to comment Share on other sites More sharing options...
Abby Normal Posted February 15, 2023 Report Share Posted February 15, 2023 18 hours ago, Sara EA said: The problem with using the nominee route is that you have to issue 1099s to the nominee. You don't have to, but you are supposed to. Over the years I've nomineed plenty of things off of one return onto another return and never had a problem. I think this is because the IRS matched the one 1099 they had, and the IRS won't normally question income on your return, for which they don't have a 1099. 4 Quote Link to comment Share on other sites More sharing options...
Sara EA Posted February 16, 2023 Report Share Posted February 16, 2023 The penalties for not filing 1099s are large enough that I wouldn't want to take the chance. If your experience makes you comfortable with nominee choice, go for it. Quote Link to comment Share on other sites More sharing options...
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