Broker will not correct decedent’s 1099 for 2023 -Decedent's DOD is 08/2/23
Nancy Burke
Dear Lee,
Decedent dies 8/2/23 - Broker’s 1099 for 2023 includes all transactions for the year (dividends, interest, short term and long-term capital gains/losses).
Broker refuses to correct 1099 to reflect transactions up to date of death, because Trustee of the Estate provided the Trust EIN in May of 2024.
I have no issue allocating dividends and interest to decedent up to DOD, and the balance as nominee distributions to the Trust.
The conundrum I have is not how do I report the report the decedent’s short- and long-term gains/loss to decedent up to date of death, but rather how to report remainder transactions (Aug to Dec.) to the Trust.
Keeping in mind the aforementioned are included in the Broker’s 1099 under decedent’s social security number. Schedule D- does not have a line item for nominee distributions. Is there an alternate form I use to report nominee transactions?
Your guidance is greatly appreciated,
Nancy M. Burke C.R.T.P.
Senior Tax Accountant
Burkes Business Services
31225 La Baya Drive, Suite 100
Westlake Village, CA 91362
Telephone: (805) 495-6422
Fax (805) 446-0086
Cell phone: (805) 824-2204
Email: n.b...@taxesnbusiness.com
Website: bbstaxes.com
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Lee Reams
I could not find any IRS instructions dealing with the Schedule D items. But here is what I would do in your situation.
1040 – Keep in mind the IRS computer is going to look for the total gross proceeds on the 1040. So, I would:
1. List all the individual transactions that belong on the 1040 on the Form 8949 for the 1040.
2. Next, I would summarize the remaining transactions into their short or long term holding periods and report those two summaries on the 1040 Form 8949 but showing the selling price as the same as the basis.
3. This will match the gross proceeds to the 1040 but not include the gain or loss that belongs to the 1041.
1041 – Report the two summaries on the 1041, use the actual sales price and basis thus accounting for the gain or loss transactions that belonged on 1041.
As an aside, you shouldn’t address your question specifically to me when you post them. That seems to deter other members of the forum from responding and might not be available at the time.
Lee
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