Question

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

Forum|Forum|2 years ago
February 16, 2024
2 replies
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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.

TurboTax Home & Biz Windows

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."

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1

1099bnAuthor

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.