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Level 1
posted Mar 30, 2024 8:11:55 AM

1099-B filing separately

Hello I would like to confirm my understanding for a 1099-B where I want to split capital gains/losses 50/50 with my spouse:

 

  1. TurboTax does not give me an option to enter the full amounts and do an adjustment to reduce capital gains or losses to half in my own tax return
  2. Consequently, I should only enter half the amounts in my own tax return (entering the full amounts would exaggerate my gains or losses)
  3. I should also file a 1099-B to the IRS (and provide it to my spouse) for the other half of the amounts
  4. My spouse will enter her half in her tax return using the 1099-B I provided her

Is my understanding correct?

Is my understanding correct?

0 2 1685
1 Best answer
Expert Alumni
Mar 30, 2024 3:16:44 PM

Yes, your understanding is correct. The 1099-B can be split evenly between you but it must be done manually. 

 

Nominee Returns.  This is how the IRS knows what you are doing.

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: 

2 Replies
Expert Alumni
Mar 30, 2024 3:16:44 PM

Yes, your understanding is correct. The 1099-B can be split evenly between you but it must be done manually. 

 

Nominee Returns.  This is how the IRS knows what you are doing.

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: 

Level 1
Mar 30, 2024 5:16:24 PM

Thank you Diane. This is most helpful.