My wife's father passed away in 2021. He was a 1/7th owner of a rental property that is held in trust. His ownership was passed to my wife and her sister 50/50. The prop manager sent us a 1099-MISC for 1/7th of the rents received (<$5k) during the year and addressed it to my deceased father in law (including his SSN).
Do we need to report this on our MFJ return? TT asks me to select "This 1099-MISC is for: [Me/My Wife]". It should be for my wife for half of whats on the 1099 (her sister is responsible for the other half), but since its been addressed to my father in law, what we input on our return will not match whats been submitted to the IRS.
I want to report it bc we'll be able to report a net loss (tax savings), but I don't want to raise an audit flag by reporting something different than whats been submitted to the IRS by the property manager.
