@RobertB4444 I had deleted the post you replied to because it was in the wrong section. I'm replying to you from the replacement post.
Thanks for your reply. For the first item which was the IN77 Limiting Age claim (Claim 1), you said "You can enter the amounts that way but I would be hesitant to do that. The IRS will receive a copy of the 1099-INT". There is no such 1099 for Claim 1. I have confirmed with the State of Wisconsin Unclaimed Property unit that the only 1099 issued for these two claims was a single 1099-INT for the $365.24 interest earned on the property for both claims while they were held by the State.
So, the 1099_INT received form the State is already accounted for in TurboTax. At question is how to handle the taxes due on the gains from the policy reaching maturity and from the demutualization (which you agreed should be entered as a 1099-B).
If Prudential had been able to locate my grandma when the policy reached maturity, as far as I can tell that would have been reported on a 1099-R, so that's why I'm suggesting that I enter it that way.
Just to recap, there are three income amounts in question here:
1. Interest earned on property while held by the State of Wisconsin ($365.24): 1099-INT received from state, already entered in TurboTax.
2. Cash received when Prudential demutualized ($767.88): Entering as a 1099-B with the "buy date" when the policy was issued. My question was how to handle the sale date and you suggested using the date my father received the claim.
3. Cash received when Prudential cashed out the policy at maturity ($6082.26): Entering as a 1099-R with gross distribution being the total received, insurance premiums as what my grandma paid, with the taxable amount being the net of the two.
