How do I report an unclaimed property payment that would have been an inhertiance from Texas?

[vbpersch]

I received notification of an unclaimed property belonging to my late mother (died 2001).  The property was demutualization shares and cash totaling $2,143.52.  This property claim was submitted as 'unclaimed' to the state of Texas in 2003 by Metlife Life Ins.

My claim as executrix of the will was submitted to the State of Texas in July of 2021.  My brother and I received individual checks as co heirs of mothers estate in August of 2021.  I have not received a 1099B from Texas.

Do I need to report this payment on my federal & North Carolina returns?

[DianeW777]

You should report the income in the year you got the check. As to where to report the transaction in TurboTax ? It should be reported as a sale with no cost, unless you have a record of the item's cost. here's the path to follow to enter the transaction in TurboTax:

1. Start at FEDERAL TAXES, then select Wages & Income 
2.  You might see "I'll choose what I work on" > Scroll to Investment Income 1099 B, Stocks, Bonds, Mutual Funds, Other 
3.  Answer the question Did you sell any investments?   
4.  Did you get a 1099 B  yes, then select  "I'll type it myself'
5.  Enter the State as bank or brokerage
6.  Enter 1099 B info as Sale #1 with cost data if you have it, otherwise, zero cost. 

[vbpersch]

I did not receive any 1099B for this payment.  In order to claim the property I had to provide my Mother's death certificate, copies of the court documents appointing me executrix, a copy of the probated will, and the contact information for the second beneficiary-my brother.  Shouldn't this payment be considered a part of her estate and not taxable?

[DianeW777 · Accepted solution]

No.  It would have been taxable to your Mother had she been alive to receive it.  Since you received it after death, it still remains a taxable income event for the beneficiaries who actually received the income.  You should report your share and your brother should report his share.  

You don't need a Form 1099B and you should answer no to that question during the entry.

[vbpersch · Accepted solution]

Thank you.