Although TurboTax does a marvelous job of handling nominee interest and dividends, we don't have a simple system in place for dealing with capital gains.
If you have a 1099-B:
- Enter interest (Interest on a 1099-INT). When you come to the screen labeled Tell us if any of these uncommon situations apply, check We need to adjust the taxable amount. (see the screenshot below.) The following screen will list nominee interest as the first Reason for Adjustment.
- Enter dividends (Dividends on a 1099-DIV). The procedure to follow is similar to interest, above.
- For capital gains and losses, the answer is not so simple. Enter the sales exactly as reported on the 1099-B. Under the Sales Category box, you will see the sentence If you have additional info about this sale, you can enter it... (see the second screenshot.) Adjust the cost basis so that your gain comes out to your share as nominee. It's an ugly way to do it, but you will get the right answer for tax purposes.
