Where can I mark a sale in 1099-B (from my broker) as received as nominee in TurboTax 2023?

[1099bn]

For TurboTax 2022 I was able to mark a sale in 1099-B as nominee with a check box. So the reported transaction in my Schedule D or Form 8949 will have an "N" assigned to it.

But for the 2023 version there is no such a box. I try both Premier and Home&Business version.

[KrisD15]

No, if you issued a 1099-B to the rightful recipient, keep the 1096 and your 1099-B with your tax file but do not enter the 1099-B into your TurboTax program. 

According to the IRS:

"Generally, if you receive a Form 1099 for amounts that actually belong to another person, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received) for each of the other owners showing the amounts allocable to each. You must also furnish a Form 1099 to each of the other owners. File the new Form 1099 with Form 1096 with the IRS Submission Processing Center for your area. On each new Form 1099, list yourself as the “payer” and the other owner as the “recipient.” On Form 1096, list yourself as the “Filer.” A spouse is not required to file a nominee return to show amounts owned by the other spouse. The nominee, not the original payer, is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner."

[1099bn]

Hello Kris,

Thank you for your message. I edited my question above so I hope you can understand my question better. The question is about the form 1099-B I received from my broker, where one of the sales I did is for someone else. So I served as a nominee for the sale. With IRS, I need to mark that sale with "N" for nominee when I file my tax return, so any gain/loss for the sale will be adjusted to zero in my return.

Per IRS, "Report the transaction on Form 8949 as you would if you were the actual owner, but also enter any resulting gain as a negative adjustment (in parentheses) in column (g) or any resulting loss as a positive adjustment in column (g). As a result of this adjustment, the amount in column (h) should be zero. However, if you received capital gain distributions as a nominee, report them instead, as described under Capital Gain Distributions in the Instructions for Schedule D (Form 1040)." 

I will file a 1099-B to someone for whom I served as nominee. I will do it soon after I can mark the sale as "N", otherwise we are paying double taxes on a single sale event.

[KrisD15]

I see. 

Yes, please give me some time to test this out as it seems some screens have changed for reporting a 1099-B since last year. 

[KrisD15]

Here are the steps to make that nominee adjustment

You may want to delete the 1099-B you started and begin over

Wages & Income

Investment Income

Stocks, Cryptocurrency, Mutual Funds, Bonds, Other START 

Select "Stocks, Bonds, Mutual Funds"

Continue

Skip Import

Complete the "Which bank or brokerage is on your 1099-B?" screen and continue

Click through the questions if necessary to get to the screen-

NOW CHOOSE HOW TO ENTER YOUR SALES

Be sure to select "Sales section totals" and Continue

On the "Now, enter one sales total on this 1099-B"  screen -

Enter the Sales section (type of Capital Gain), Proceeds and Cost 

CHECK THE BOX FOR "I need to adjust my total cost basis" 

A drop-down list appears with adjustment codes

Scroll down and Select N (nominee for actual owner of property) 

Enter the amount of the gain as a negative number or the amount of the loss as a positive number

Continue

The following screen should show 0 gain/Loss 

You will need to mail a copy of the 1099-B with Form 8453 with or without your return (the 1040 return may be e-filed).

Here are instruction on mailing Form 8453 with your 1099-B

@1099bn 

[1099bn]

Thanks Kris. Your guide helps me understand a way to get around it. Although it will bring a lot of extra work for input and mailing to IRS. It would be better if TurboTax could retain the function as the 2022.

I have hundreds of sales to enter, so without import function from broker, it's kind of nighhtmare. And the function is not available for the one-by-one input (only available for sales section totals). I guess TurboTax skips this function for one-by-one input by accident when they changed the layout. Last year for 2022 I was able to import from broker and only needed to mark some sales as nominee, which is convenient. I wish they can fix this bug. I am not sure if I should try Taxact as I already paid for TurboTax.🤔

[1099bn]

I just found out Taxact allows the adjustment as nominee under one-by-one input with import from my broker. So I don't need to type a few hundreds of sales in 1099B. That is a big relief. I do like the layout in TurboTax a little better, as the sales in Taxact are a little bit disorganized without a sorting option like dates. But that's a relative minor issue. I just have to pay the extra filing fee for switching to Taxact as it seems TurboTax is not willing to fix this bug.