My father sent me a 1099-B & 1099-div for custodial mutual fund he manages, I didn't even know existed, I have already filed & received my return, do I have to amend?

Forum|Forum|7 years ago
June 3, 2019
1 reply
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I found out the accounts were set up when I was 10 years old. For the last 20 years (yes I am 30) this account was not touched. Recently he sent me a personal check for 5k for an upcoming wedding. After I filed my taxes like I do every year, I have two 1099-div and one 1099-B

Now I have a 1099-B that states:

BOX 6 Gross Proceeds 0.00$

BOX 4 Federal Taxes withheld $0.0

1099-DIV Cornerstone MOD Aggressive

BOX 1a Ordinary Dividends $158.47

BOX 1b Qualified Dividends $22.61

BOX 2a Total Capital Gains $176.80

1099-DIV Growth Fund

BOX 1a Ordinary Dividends $72.61

BOX 1b Qualified Dividends $53.53

BOX 2a Total Capital Gains $203.99

I will amend and file these doc, but most importantly how URGENT is it that I amend? What is even taxable on these forms?

Best answer by rjs

All the items on the 1099-DIV forms are taxable. The 1099-B appears to have no transactions. You can ignore it. (Financial institutions typically send out a consolidated statement that contains sections for every possible 1099-series form, even if some of the forms have no income and are all zeros.)

You do have to amend your tax return, but you don't have to panic about it. The amended return forms for 2018 are currently expected to be available on March 7. Also, you should not amend until after your original tax return has been processed by the IRS and you have received the refund, if any.

It's not clear where the $5,000 for the wedding came from. If it came from this custodial account, something had to be sold to obtain the money, but the 1099-B does not show any sales. It might have come from a money-market fund, which does not have to be reported. Or was it a gift from your father, from his own funds?

A custodial account is for a minor child, who cannot own or manage his or her own investments. But the money is yours. Your father should have turned it over to you years ago. You should ask him to transfer it to an account in your own name, with your address, and give you control of the account. This can be done without selling any of the mutual funds, so it does not trigger any taxes.

rjs

Answer

Level 15

All the items on the 1099-DIV forms are taxable. The 1099-B appears to have no transactions. You can ignore it. (Financial institutions typically send out a consolidated statement that contains sections for every possible 1099-series form, even if some of the forms have no income and are all zeros.)

You do have to amend your tax return, but you don't have to panic about it. The amended return forms for 2018 are currently expected to be available on March 7. Also, you should not amend until after your original tax return has been processed by the IRS and you have received the refund, if any.

It's not clear where the $5,000 for the wedding came from. If it came from this custodial account, something had to be sold to obtain the money, but the 1099-B does not show any sales. It might have come from a money-market fund, which does not have to be reported. Or was it a gift from your father, from his own funds?

A custodial account is for a minor child, who cannot own or manage his or her own investments. But the money is yours. Your father should have turned it over to you years ago. You should ask him to transfer it to an account in your own name, with your address, and give you control of the account. This can be done without selling any of the mutual funds, so it does not trigger any taxes.

A

aituzzipAuthor

Level 2

Thank you, there was a bit of information on the 1099-b on a second page but the form stated it was a summary for informational purposes. I didn't know if this was part of the doc or a courtesy of the bank. Long term E-basis not reported to IRS. BOX Id Proceeds- $5000, BOX Ie Cost or Basis - $4457.03, box Ig Wash - 0.0, and Net Capital Gains - $542.97.
My father said it was from this account that the check came from but when he "withdrew" the check was made out to him. He also claimed that if he was to transfer into my funds I would have "many tax implications." I am very much in the dark about the details and I'm unfamiliar whit these types of accounts.