1. Yes and yes. Nominee income is when you nominate someone else to receive the income. Your uncle will be nominee for the 25% of the utilities. Same for your mother's personal return vs the estate, assign nominee as needed to whichever way is correct for each form.
2. Yes. Enter the forms as received and subtract out with a negative entry under less common income with a description*:
nominee 1099-MISC income -$xx
nominee 1099-DIV income - $yy
The correct way to handle this:
For the 1099-MISC, you are supposed to give your uncle a 1099-MISC from your mother (or estate if that is the case) to him. For interest/ dividends, etc - again you would pick the matching form and have it go from one party to the other. I feel that proving the move between mom and estate would be simple enough.
Forms and instructions needed:
*follow these steps:
- go to the federal income section
- scroll to the bottom
- Miscellaneous Income, 1099-A, 1099-C, Start
- Scroll to the bottom
- Other reportable income, Start
- Other taxable income?
- Select YES
- Description nominee 1099-MISC
- Amount, enter your amount as a negative
- continue
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