1099-B

It must be filed.  You and your brother can split the stock sale and each report half.  You will need to find the fair market value of the stock on the date of death of your Uncle, and this will be your cost basis for the sale.  

You can nominee half of the sale to your brother if the 1099-B came in only your name and social security number (SSN). 

Nominee Returns.

Generally, if you receive a Form 1099 for amounts that actually belong to another person or entity, you are considered a nominee recipient. You must file a Form 1099 with the IRS (the same type of Form 1099 you received).  You must also furnish a Form 1099 to each of the other owners. 

File the new Form 1099 with Form 1096 (this is a transmittal for the 1099) by mailing to the Internal Revenue Service Center for your area. (Provided on the Form 1096)

• On each new Form 1099, list yourself as the payer and the other owner, as the recipient. On Form 1096, list yourself as the nominee filer, not the original payer.  The nominee is responsible for filing the subsequent Forms 1099 to show the amount allocable to each owner.

The forms filed with the IRS should be the red copy so if you don't have a color printer, go to the IRS website and order the forms here: 

• Form 1096-Transmittal 
• Form 1099-B 2020

In order for TurboTax to know the stock is inherited we want to be sure you have all the right selections when you enter these investment sales.  The cost will be the inherited value on the date of death. Inherited investment assets are always considered held long term. 

Sign into your TurboTax account, then follow the steps below.

1. Select Wages & Income > Scroll to Stocks, Mutual Funds, Bonds, Other > Review
2. Select Edit beside the inherited stock or Add another sale
3. Continue to Review your (description of inherited stock) sales > click the pencil to edit this stock sale
4. Now you can follow the screen image provided with the additional details next:
   • When we get to this screen shown above, be sure to select at the top > Long term basis not reported to IRS,
   • Select the check box beside The cost basis is incorrect or missing on my 1099-B
5. On the next screen you can choose None of these apply > Select I don't want to make any changes to my cost basis right now
6. You can choose to get a call from an expert if it pops up, otherwise you can say No thank you
7. Continue through the rest of the screens.
8.