Thank you for the response. However, wouldn't filing 1099s for each return result in doubling the amounts reported for each? See below for the actual amount reported in Box 1a of the 1099-DIV. The numbers are rounded to simplify, but are close to actual.
Total Ordinary Dividends received = $16,000
Applicable to Decedent = $11,000
Applicable to Estate = $5,000
1099-DIV Box 1a reported to Decedent = $16,000
1099-DIV Box 1a reported to Estate = $16,000
Filing a 1099-DIV from the Decedent to Estate for $5000 results in adjusted amounts as follows:
Decedent = $16,000 - $5,000 = $11,000
Estate = $16,000 + $5,000 = $21,000
Next, if we file a 1099-DIV from the Estate to Decedent for $11,000, the adjusted amounts are as follows:
Decedent = $11,000 + $11,000 = $22,000
Estate = $21,000 - $11,000 = $10,000
End Result:
Decedent = $22,000 but should be $11,000
Estate = $10,000 but should be $5,000
It seems like the brokerage reported twice the amount it should have ($32,000 instead of $16,000), so amounts need to be subtracted from each account, whereas sending 1099s between the two returns simply moves the doubled money between the accounts.
Please correct me if I'm understanding this wrong. I would really like to avoid having to attach an explanation letter since it will draw more attention to the situation.
Let me know what you think.
Thanks.
P.S. We originally just received one 1099-DIV for the decedent that showed $16,000 in Box 1a. I requested a corrected 1099 for the decedent and a 1099 for the estate. The brokerage refused to issue a corrected form for the decedent, and proceeded to issue a 1099 to the estate with $16,000 in Box 1a.
