Question

Can I adjust capital gains and losses that I receive as a Nominee? How do I adjust these gains/losses?

Forum|Forum|7 years ago
June 5, 2019
2 replies
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TurboTax Premier Online

M

mebravos

Any updates on this for the 2018 returns

M

MiriamF

Employee

Although TurboTax does a marvelous job of handling nominee interest and dividends, we don't have a simple system in place for dealing with capital gains.

If you have a 1099-B:

Enter interest (Interest on a 1099-INT). When you come to the screen labeled Tell us if any of these uncommon situations apply, check We need to adjust the taxable amount. (see the screenshot below.) The following screen will list nominee interest as the first Reason for Adjustment.
Enter dividends (Dividends on a 1099-DIV). The procedure to follow is similar to interest, above.
For capital gains and losses, the answer is not so simple. Enter the sales exactly as reported on the 1099-B. Under the Sales Category box, you will see the sentence If you have additional info about this sale, you can enter it... (see the second screenshot.) Adjust the cost basis so that your gain comes out to your share as nominee. It's an ugly way to do it, but you will get the right answer for tax purposes.

A

AK42

Found a clean way to do it within Turbotax 1040 within Investment Sales topic, implementing 2016 Instructions for Form 8949. Enter a summary for a sales category (short or long term), fill in amounts, check the adjustments box, then type code "N" in the box for adjustments, click done. Next screen shows Gain/(Loss) zeroed out. (You can read the "mailing instructions at this point" - Box A and Box D sales may not need Form 8453 since Code "N" is so specific.) But be sure to look for Form 8949 which has just been created by TurboTax: gain/Loss zero.