My wife's mother passed away and my wife had a 1099-B sent to her for distribution to all the siblings. How do I include this in our taxes as the account is now closed?

[MarilynG1 · Accepted solution]

If the 1099-B is in your wife's name and SSN, she will enter it in her tax return.  If the Cost Basis of the Investment sold is correct on the 1099-B, you can enter it as received. If the Cost Basis is incorrect, you can indicate that and enter the correct basis.  

If she then distributed a portion of the proceeds to others, she can report it as Nominee Income in her return. Then she has adjusted her taxable portion of the 1099-B proceeds.  

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners. 

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)

• On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here: 

• Form 1096
• Form 1099-DIV
• Form 1099-B
• Form 1099-INT

@gwmorgan1955 

[gwmorgan1955]

My wife received her part of the 1099B ( one of four siblings ).

What parts are relevant or is it pretty straightforward?

Thanks for the assistance. This is all new to us. 

[JamesG1 · Accepted solution]

Enter the IRS form 1099-B manually Into TurboTax Premium Online.  Follow these steps:

1. Down the left side of the screen, click Federal.
2. Down the left side of the screen, click Wages & Income.
3. Click the down arrow to the right of Investments and Savings.
4. Click to the right of Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B).
5. Click Add investments.
6. On the Let's import your tax info screen, select Enter a different way.
7. On the OK, let's start with one investment type screen, select Stocks, Bonds, Mutual Funds, then Continue.
8. At the screen Which bank or brokerage, enter the information.  Click Continue.
9. Do these sales include any employee stock, enter No.
10. Do you have more than three sales, enter No.
11. Do these sales include any other types of investments, enter No.
12. Did you buy every investment listed, enter No.  Continue.
13. On the screen Now, choose how to enter your sales, select One by One.  Select Continue.
14. At the screen Look for your sales on your 1099-B, select Continue.
15. Enter the IRS form 1099-B information.
16. Select Add another sale to add another transaction.

If this does not completely answer your question, please contact us again and provide more information.

@gwmorgan1955