Tax Year Prior to 2020: 1099 MISC

Forum|Forum|6 years ago
February 2, 2020
1 reply
2 views

My mother passed away in 2016 and was receiving commissions from the sales of insurance. The three kids now split the commissions as an inheritance. Why does the 1099 mis in Turbo tax treat it as if it is a business. The business was dissolved when she passed. There is no business tied to these commissions.

VictorW9

Level 7

Receiving a 1099 Misc is akin to receiving a self-employed income as such to be filed as a schedule C income. You will have to deduct all expenses that relates to that income.

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DJ99Author

Level 2

There are no expenses, the business was closed after she passed. Is it still considered as the same business? Us three kid inherited the commissions that will continue until the policy holder is deceased or no longer making payments to the insurance company.

VictorW9

Level 7

This sounds like are receiving residual income from your mother's will or estate. The inheritance doesn't seem to be distributed through an estate and is coming in the form to the beneficiaries as a 1099 Misc which is what your mother would have been receiving if she was still alive. In any case you have to report it as income and the only logical place to report a 1099 Misc is on a schedule C.

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