I'm filing taxes for my mother who passed away in October of 2021, and have a few questions for the experts.
1099-MISC Form:
The first question involves a rental property that was owned 75% by my mother and 25% by my uncle. The home served as a group home for disabled adults, and rent was paid by a non-profit organization that provided a 1099-MISC form with 'Rents' shown in Box 1. Normally, my mother gets a 1099-MISC showing 75% of the rent, and my uncle gets a 1099-MISC showing 25% of the rent.
This year, in addition to rent, the organization made back-payments for utility bills that were mistakenly missed over the past few years. The issue is that they paid my mother for 75% of the rent but 100% of the utility back-payments. My mother then transferred 25% of the back-payments to my uncle. The 1099-MISC shows the 75% rent plus 100% utility payments, which is correct from the organization's standpoint, but doesn't account for the 25% of utility payments my mother transferred to my uncle.
Question 1: What's the proper way to address this? Enter the numbers per the form first, and then make a negative entry under Less Common Income - Miscellaneous Income?
1099-DIV:
Dividends from investments were received before and after my mother's death in October 2021. The investments were originally in a living trust tied to my mother's SSN. After she died, a separate trust was established using an EIN for tax purposes.
The initial Form 1099-DIV received was incorrect and did not reflect my mother's death. After waiting several months, we finally received a form for the new trust under the EIN (still waiting for the corrected form tied to my mother's SSN). However it's still showing dividends received from early 2021 while my mother was alive that should be tied to her tax return using her SSN.
Ideally, we would get corrected forms for both returns (my mother's and the new trust), but at the rate it's been going, I'm looking for guidance on how to handle this assuming the corrected forms are not available. I have details and dates for all dividend transactions, so it's pretty straightforward to figure that part out.
Question 2: What's the correct way to handle this? Should I enter it as shown on the 1099-DIV first, and then make a negative entry somewhere else?
Thanks.
