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Where do I put residuals that I receive as a beneficiary of my deceased brother?

I received no 1099-misc for these.
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4 Replies
Dan915
New Member

Where do I put residuals that I receive as a beneficiary of my deceased brother?

Cash distributions from an estate are not taxed on your federal or state income tax returns (the estate pays tax on those assets, if it exceeds a certain dollar amount).
If you received stocks or other assets from the estate, these are not taxed to you either. The cost basis you have in those assets if you sell them is the fair market value of those assets as valued by the estate on the date of his death.
I'll assume you were not the beneficiary of a taxable IRA. That gets a little more complicated, but those proceeds would be taxed at some point in the future when you receive the payments and you would receive a Form 1099-R.

Where do I put residuals that I receive as a beneficiary of my deceased brother?

These are small amounts (payments for the acting he did in various movies ) that I receive from time to time through SAG-AFTRA; he made me a beneficiary to receive these....I did not receive them at the time of the closing of his estate.  So I don't have to declare these?

Where do I put residuals that I receive as a beneficiary of my deceased brother?

Will I receive an answer from you?
Dan915
New Member

Where do I put residuals that I receive as a beneficiary of my deceased brother?

Technically, these should have been valued within the estate. However, since they weren't, report it on Schedule E as a Royalty. You will not have any expenses related to the Royalty.
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