Download1099 information from Merrill Lynch Form 1041 in Turbotax Buisness - Estate?

[pierceMD]

I am doing my mother's estate income tax. Her portfolio was liquidated, thus there a lot of transactions. I do this easily in TurboTax Premier. I don't see how to do it for the estate.

[Anonymous_]

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@pierceMD wrote:

I am doing my mother's estate income tax. Her portfolio was liquidated, thus there a lot of transactions. I do this easily in TurboTax Premier. I don't see how to do it for the estate.

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TurboTax Business does not support downloading (importing) 1099 information from brokerage firms as do the individual income tax preparation products, such as TurboTax Premier.

[VolvoGirl]

And even if you could import, it is too early for 2021 and too late for 2020.

[pierceMD]

I'm filing an extension. Whether, They are downloaded or done by hand I still have to wait for them to be generated. ML will not generate them for a fiscal year. It's an estate account, but they don't seem to understand the IRS requirements.

TurboTax doesn't seem to understand that estates liquidate stocks. The down load module from personal taxes could be put into the product. It's the only part of this filing that is overwhelming. Had I known I would not have purchased it.

[Anonymous_]

@pierceMD 

You could, for 2021 (when available), import information into Premier and then use the 8949 for the 1041, but note that you will have to print and mail the return.

[Anonymous_]

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@pierceMD wrote:

The down load module from personal taxes could be put into the product.

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The attachment process could be improved easily, but it has not been despite numerous suggestions. 

I believe the issue with downloading might be the fact that the product can be used to prepare different types of returns from estates/trusts to corporations to partnerships.

[pierceMD]

Why would that be an issue? Would it cause a problem for others to not use it? However they decide to bundle products it should do the job robustly. I paid twice as much for business than Premier. I cannot be the only person doing a 1041 who is dealing with a liquidated stock portfolio.

[Anonymous_]

@pierceMD 

I have no idea as I am not a software programmer. I was simply speculating, but I suspect it could be due to the fact that (a) the module would affect other types of returns (perhaps adversely) and, (b) the module would not be necessary for at least one type of return. 

Most returns of this type that have a substantial number of transactions are printed and mailed (or a summary is used and then, for example, the 1099-B is printed and mailed along with a transmittal form).

[Critter-3]

You can quickly enter this manually.  Your brokerage statements should include a summary of your transactions, grouped by sales category.

There are seven possible "Box" designations that indicate the holding period (Long/Short Term) and the reporting status.  These are the only ones you have to summarize. If you want to manually enter your 1099-B as the summaries.

1. Tell us about your 1099-B sales for this BOA account
1. Answer the questions
2. Since you have more than a few BOA sales, we recommend entering sales section totals
1. Continue
3. Before entering sales section totals, take a moment to find them on your 1099-B
1. Continue
4. Now, we'll enter one sales section total on your BOA 1099-B
1. Use the drop down menu to select the correct designation.

Code A. This code indicates a short-term transaction for which the cost or other basis is being reported to the IRS. Use this code to report a transaction that the recipient will report on Schedule D (Form 1040), line 1a, or on Form 8949 with box A checked with totals being carried to Schedule D (Form 1040), line 1b.

Code B. This code indicates a short-term transaction for which the cost or other basis is not being reported to the IRS. Use this code to report a transaction that the recipient will report on Form 8949 with box B checked with totals being carried to Schedule D (Form 1040), line 2.

Box C. Report on a Part I with box C checked all short-term transactions for which you can't check box A or B because you didn't receive a Form 1099-B (or substitute statement).

Code D. This code indicates a long-term transaction for which the cost or other basis is being reported to the IRS. Use this code to report a transaction that the recipient will report on Schedule D (Form 1040), line 8a, or on Form 8949 with box D checked with totals being carried to Schedule D (Form 1040), line 8b.

Code E. This code indicates a long-term transaction for which the cost or other basis is not being reported to the IRS. Use this code to report a transaction that the recipient will report on Form 8949 with box E checked, with totals being carried to Schedule D (Form 1040), line 9.

Box F.  Report on a Part II with box F checked all long-term transactions for which you can't check box D or E because you didn't receive a Form 1099-B (or substitute statement).

Code X. Use this code to report a transaction if you cannot determine whether the recipient should check box B or box E on Form 8949 because the holding period is unknown.

Open or continue your return (if it's not already open) and search inside TurboTax for the phrase stock sales.

1. Select the Jump to link in the search results.
2. Answer Yes to both Did you sell stocks, mutual funds, bonds, or other investments? and Did or will you receive a 1099-B form or brokerage statement for these sales?
• If you land on Here are all your 1099-B sales, select Add sales from a different brokerage. Then answer Yes to Did or will you receive a 1099-B form or brokerage statement for these sales?
3. When asked how you want to enter your 1099-B, select I'll type it in myself.
4. Select or enter your brokerage on the next screen and continue.
5. On the following screen (Tell us about...), answer the questions until you reach the next screen. Select the second option, Let's enter a summary instead, and select Continue.
6. You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category. Refer to your 1099-B for the amounts and category. When finished, select Continue.

When you are done, you'll eventually come to the Here's a summary of your broker sales screen where you can edit, delete, or enter more sales.

[Anonymous_]

@Critter-3 has the right idea, but there is an issue:

The investments (stocks, bonds, et al) might have received a stepped-up basis on the death of the mother and the brokerage statement might not reflect the new basis. Further, the holding period for property acquired from a decedent is automatically long-term and the 1099-B may not reflect that (for some securities) either. If so, then the data need to be entered manually, regardless.

[pierceMD]

It is not a "stepped-up basis." It is income to the estate the basis is determined by the date of death.  These factors are all dealt with when you open an estate account. It is the reason why you file a Form 1041. I just want the data from that account to go into turbotax. If I have to manually enter 100+ transactions, and cannot carry my information over from quicken why do I need turbotax? It is not an estate filing software, it seems to be business software that has the 1041 form as an after thought. 

[Mike9241]

the problem is part IRS which requires calendar-year filing of reporting forms, part brokers who also do not provide fiscal year reporting forms and TT which doesn't provide for import

[Critter-3]

The alternative to entering in all the sales manually is to enter them as a summary instead. 

1. Answer Yes to both Did you sell stocks, mutual funds, bonds, or other investments? and Did or will you receive a 1099-B form or brokerage statement for these sales?
• If you land on Here are all your 1099-B sales, select Add sales from a different brokerage. Then answer Yes to Did or will you receive a 1099-B form or brokerage statement for these sales?
2. When asked how you want to enter your 1099-B, select I'll type it in myself.
3. Select or enter your brokerage on the next screen and continue.
4. On the following screen (Tell us about...), answer the questions until you reach the next screen. Select the second option, Let's enter a summary instead, and select Continue.
5. You'll now be able to enter the total proceeds (sales) and cost basis, along with the sales category. Refer to your 1099-B for the amounts and category. When finished, select Continue.

When you are done, you'll eventually come to the Here's a summary of your broker sales screen where you can edit, delete, or enter more sales.

[pierceMD]

I know how to do all of this. It's just that then it must be mailed in. It defeats the purpose of paying for TurboTax.

[pierceMD]

The IRS doesn't require calendar year forms. That's why there is TT for business. You put the fiscal year into TT and the forms will have the correct dates. The 1099s will will include nothing beyond the last transaction with it's appropriate date. It doesn't matter that it could include to the of the year. I wish they could have generated it months ago so I would be done with it all, and I wouldn't have need to file an extension.

I paid more for the business software than the person premier, but I cannot download any transactions either from the financial institution, and from Quicken. That was my initial question. I DO NOT need to be told all the work arounds. And included in the fee was electronic filing, yet I have to include the 1099s so I have to mail it in.