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?
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:
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"
If TurboTax doesn't support Code N, Never Mind