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Get your taxes done using TurboTax
Your prior post dealt with nominee income/gain/interest, thus this response assumes the capital gain at issue relates to nominee capital gain, i.e., a capital gain realized by the account owner but part or all of that capital gain belongs to someone else.
The instructions for Form 1040 provide that a nominee reports on line 7 of Form 1040, only that portion of the capital gain that belongs to them; however, the nominee must include a statement with their return showing the full amount and the amount received as a nominee. TurboTax does not support the statement that needs to be included with the nominee's return. Thus, it appears you may have to paper mail your return.
Here are the instructions for line 7 of Form 1040 that relates to nominees along with a link to the instructions.
If you received capital gain distributions as a nominee (that is, they were paid to you but actually belong to someone else), report on line 7 only the amount that belongs to you. Include a statement showing the full amount you received and the amount you received as a nominee. See the Schedule B instructions for filing requirements for Forms 1099-DIV and 1096.
To the extent as nominee you also received interest and dividends, here are the relevant instructions for Schedule B along with the link to the IRS publication.
Schedule B Instructions for 1099-INT and 1099-DIV:
Nominees. If you received a Form 1099-INT that includes interest you received as a nominee (that is, in your name, but the interest actually belongs to someone else), report the total on line 1. Do this even if you later distributed some or all of this income to others. Under your last entry on line 1, put a subtotal of all interest listed on line 1. Below this subtotal, enter “Nominee Distribution” and show the total interest you received as a nominee. Subtract this amount from the subtotal and enter the result on line 2.
Nominees. If you received a Form 1099-DIV that includes ordinary dividends you received as a nominee (that is, in your name, but the ordinary dividends actually belong to someone else), report the total on line 5. Do this even if you later distributed some or all of this income to others. Under your last entry on line 5, put a subtotal of all ordinary dividends listed on line 5. Below this subtotal, enter “Nominee Distribution” and show the total ordinary dividends you received as a nominee. Subtract this amount from the subtotal and enter the result on line 6.
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