1. Income should be divided up based on when received, personal or estate. If you still have the rental, it ends up on the estate so you may as well split it correctly. The IRS knows her social and the estate connections.
On her final return, you can show a negative number in Line 21 The negative number on Line 21 will adjust the income of the reported payee to the correct amount. The reported payee will issue a Form 1099-MISC to the nominee payee for nominee’s share of the distribution.
You can enter a negative income adjustment with the following menu path:
- Federal Taxes
- Wages & Income
- Less Common Income
- Miscellaneous Income
- Start
- Other Reportable Income
- Start
- Other Taxable Income
- Description = “Distribution to Estate YYY, EIN xx-xxxxxxx
- Amount = -$xxx
TurboTax will transfer this to your Form 1040, Line 21, Page 1. To create the 1099 forms, see:
2. Yes
@Yueh1
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