Deceased taxpayer - capital gains on 1099-DIV are nominee distribution. Can't find how to show this.

[colorfulcat]

Thank you. Hoping someplace on the community another person has dealt with the CG issue.

[Anonymous_]

Yeah, I have and am not sure of the issue.

The funds received after death are reported on the return of whoever received the funds. That is typically the estate or one or more of the beneficiaries. Since this was a TOD account, it would be reported on the return(s) of the named beneficiary(ies).

[colorfulcat]

Yes, I know. I believe I stated this in my first post. But it's on the decedent's 1099-DIV, so I have to put it on his 2021 tax form and then subtract it, attributing the amount to the nominee (beneficiary).

That's the crux of my question: how/where to do this with the capital gains that appear on 1099-DIV?   Turbotax helps me do this with the portion of the dividends appearing on the 1099-DIV that belong to the beneficiary. 

Hopefully on the right track. Trying a different search. Reporting income with respect of the decedent. Sorry I've posted so much. 

[Anonymous_]

You are going to have to enter this on Form 8949 with the N code, but I do not believe TurboTax is going to support that entry unless you use Forms Mode.

If you received capital gain distributions as a nominee (that is, they were paid to you but actually belong to someone else), report on Schedule D, line 13, only the amount that belongs to you. Attach a statement showing the full amount you received and the amount you received as a nominee.

[colorfulcat]

Unfortunately, I tried that document when you first shared the link a few days back and it doesn't seem to apply. The only spot where nominee is mentioned discusses figures that appear on a 1099-B.  My question is about capital gains that appear on the 1099-DIV. 

Quoting from the link you shared: 

"You received a Form 1099-B or 1099-S (or substitute statement) as a nominee for the actual owner of the property"

[Anonymous_]

Capital gains are capital gains.

In fact, a Form 1099-B merely breaks down the components of a transaction (which often results in capital gain).

Further, most of the larger brokerage firms issue consolidated 1099-B forms that include interest, dividends, and capital gain distributions. 

Regardless, the instructions in the link I posted are fairly clear and not as I suggested earlier with respect to Form 8949 (unless you have other capital gains to report).

[Anonymous_]

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@colorfulcat wrote:

Quoting from the link you shared: 

"You received a Form 1099-B or 1099-S (or substitute statement) as a nominee for the actual owner of the property"

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Here is the language in the IRS instructions from the link I posted:

....if you received capital gain distributions as a nominee, report them instead, as described under Capital Gain Distributions in the Instructions for Schedule D (Form 1040).

[Anonymous_]

https://www.irs.gov/instructions/i1040sd#en_US_2021_publink24331id0e249

If you received capital gain distributions as a nominee (that is, they were paid to you but actually belong to someone else), report on Schedule D, line 13, only the amount that belongs to you. Attach a statement showing the full amount you received and the amount you received as a nominee.