I have a Joint Brokerage account with a friend. How do i notate in Turbotax that we each own 50% of the account (each contributed 50% ) ?

Forum|Forum|7 years ago
June 4, 2019
8 replies
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Me and my friend have 50% on a joint brokerage account.

On the 1099-b its both our names.

How do we each notate in turbotax that we own and are liable for 50% of the tax ? I know we are supposed to put a note on our taxes somewhere but i dont see where.

Thanks

TurboTax Premier Mac

PaulaM

Alumni - Expert

Are both person's SS numbers on form?

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jtwcarboyAuthor

Level 2

I just opened the account and am planning on next years taxes so I'm not sure about both SSN on the form . However it was opened as a joint brokerage account with me as primary account holder and him as joint account holder . Both SSN's were provided at account opening . Hope That helps .

BobinCT

Level 8

I very much doubt that to 1099s will be issued to two different SSNs.

jtwcarboyAuthor

Level 2

Ok so take the total gain / loss and divide equally on the tax form for each security then ensure that the total gain / loss for each person totals collectively to whatever is on the 1099 ? I think the 1099 will only have 1 SSN based on my research but we will ensure each person pays taxes to total the 1099 number .

PaulaM

Alumni - Expert

Yes, divide everything proportionately.

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PaulaM

Alumni - Expert

If both SS numbers on the account (not form), then each enter proportionate share manually. The IRS will be looking for the whole amount from the payer. Amounts for each need to add up to the total. There is no way to add a note if you e-file. Only possible if you mail your return.

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Anonymous

@jtwcarboy: Please verify if you are referring to 2 individuals with social security numbers.

ScruffyCurmudgeon

Alumni - Champ

If only one recipient is designated on the Form 1099-B, the indicated person whose TIN SSN was reported as receiving the proceeds of the transaction must file indicating the entirety of the transaction. Then, within the filing process, a correcting adjustment is made to indicate that a portion of the proceeds were received in nominee [meaning in the name of] a second party. A reversing entry is then made.

For TurboTax processing of Form 1099-B, you would follow these steps and see the attached image - WARNING: TurboTax does not support an Adjustment on Form 8949 of Code=N for nominee, so you must print out your return and mail it; before doing this you will have to manually alter the Form 8949 on the printed form as indicated below. Also, in manually altering the Form 8949 and the non-submitted Form 1099-B Worksheet, you will be invalidating the TurboTax "guarantee." It will be as if you had done all the entries manually on blank forms, although TurboTax will have done all the calculations and have put all the other entries where they belong. [Alternative: Have a professional preparer do your return and share the cost with the co-owner!]

Sales of investment assets where the sale is undertaken "in nominee" now must be reported as an Adjustment.

First, report the entire Form 1099-B on the Form 1040 for the named recipient on the Form 1099-B.
1099-B is far more difficult because the program now no longer allows a negative number of shares to be entered.

Note that you must click that Box 1G is to be entered. Box 1F has no appropriate explanation. When you leave this blank, TurboTax will flag it as an error. When you do the Federal (and State) review, you will have to ignore this error. This will require you to file a printed, paper return to be mailed in. The Gross Cost Basis will be that as reported, if reported, on the Form 1099-B, and an adjustment must be manually entered. In the entry of the Supporting Documentation Worksheet, use the in nominee party's [the other party] as follows "Received as Nominee for XXXXX (and the person and the EIN/TIN/SSN of that party)". Enter a negative amount representing that person's share of the NET Gain or a positive amount representing that person's share of the NET Loss!

This will allow your Schedule D to be properly calculated even though the Form 8949 will be in wrong form and TurboTax will indicate an error. You must manually correct the Form 8949 as shown in the image - the two pink blocks - in the first enter as a negative number (if a capital gain) the amount of proceeds distributed to the co-owner; in the second pink block should be the resulting sum of net proceeds less the distribution. On the Form 1099-B Worksheet which is not filed or sent in, Box 8a the pink block Enter (for your records) "N"

Notify the other party of their obligation to file as if they had received a Form 1099-B for their portion of the gain or loss. [They benefit if it is a loss!]

See the image. Make sure to print and include this Supporting Information, if necessary with an explanatory statement. For your own benefit retain a copy of this worksheet in the PDF that you will save of your entire tax filing [print all forms and all worksheets].

IMPORTANT: The Supporting Document can not be transmitted in an eFile but that does not prevent you from doing Paper mailed return. HOWEVER, I do believe that this reporting may offer an enhanced likelihood of an written inquiry so be prepared to have a written explanation. Your worksheet should be sufficient as explanation.

If this posted response is useful to you, please click on the upraised hand in the lower left of this post. Thank you. Scruffy Curmudgeon--PFFM/ IAFF, retired FireFighter/Paramedic - Locals 718/30, Veteran USAR O3 AIS/ASA '65-'67. NOT INTUIT EMPLOYEE . USAR 64-67 AIS/ASA MOS 9301 - O3 . - Just donating my time. **Say Thanks by clicking the thumb icon in the lower left corner -it means nothing but makes those than answer feel wanted.

rjs

Level 15

You cannot enter an adjustment amount without an adjustment code, but TurboTax will not allow you to enter the correct adjustment code for 1099-B income received as a nominee, which is code N.

TurboTax "does not support reporting a transaction for which you received a Form 1099-B or 1099-S as a nominee." You cannot use TurboTax to prepare your tax return in this situation. This limitation is listed in "Calculations Not Supported in the 2015 TurboTax Individual Federal Tax Program." See the FAQ at the following link.

<a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/questions/1901702-are-there-any-personal-individual-tax-situations-or-calculations-that-turbotax-doesn-t-handle">https://ttlc.intuit.com/questions/1901702-are-there-any-personal-individual-tax-situations-or-calculations-that-turbotax-doesn-t-handle</a>

In the FAQ, click on the "2015" link to download the complete list of calculations not supported. Nominee dispositions is item 29 under Income, on page 4.