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Divorced in 2023; I am ISSUING a 1099-B to my ex. How do I report this? Currently, my return shows the full value of the capital gains received (per broker's 1099-B).

As the title said, I am issuing 1099-B forms to my ex for her share of the 2023 capital gains (I received the 1099-B from the broker with 100% of the 2023 gains).  How do I enter this on the return so as to show the proper capital gain income for me in 2023.  

For example- if sold $10,000 of stock and had a short-term gain of $5,000 the $5,000 gain currently would reside on my return.  The 1099-B, I (would have) filed as nominee shows her half ($2,500) of the gain.  What is the 'mechanism' to remove this $2,500 from my return?
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2 Replies
ThomasM125
Expert Alumni

Divorced in 2023; I am ISSUING a 1099-B to my ex. How do I report this? Currently, my return shows the full value of the capital gains received (per broker's 1099-B).

You need to add an adjustment to the cost basis of your investment sale. You will see an option for this when you enter the Form 1099-B information in TurboTax:

 

 

You will see an option to add the adjusted cost basis on a later screen:

 

 

 

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Divorced in 2023; I am ISSUING a 1099-B to my ex. How do I report this? Currently, my return shows the full value of the capital gains received (per broker's 1099-B).

If you use that dialog TurboTax will use Code B

 

For nominee income , use Code N

 

"Report the transaction on Form 8949 as you would if you
were the actual owner, but also enter any resulting gain as
a negative adjustment (in parentheses) in column (g) or
any resulting loss as a positive adjustment in column (g).
As a result of this adjustment, the amount in column (h)
should be zero. However, if you received capital gain
distributions as a nominee, report them instead, as
described under Capital Gain Distributions in the
Instructions for Schedule D"

 

--

You could zero out the 1099-B with Code N as described above.

Then report your half as the other nominee recipient as stated in the Schedule D instructions

OR

cut the gain in half by reporting an adjustment of 50%

--

In 8949 description, put "50% interest"

 

@finance11 

 

If TurboTax doesn't support Code N, Never Mind

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