Question

Deceased taxpayer - capital gains on 1099-DIV are nominee distribution. Can't find how to show this.

Forum|Forum|4 years ago
April 2, 2022
1 reply
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Doing taxes for deceased loved one. Turbotax let me separate dividends shown on 1099-DIV to subtract distributions that occurred after he died, which belong to beneficiary. It did not give me a way to set aside the capital gains distributed after he passed from the 1099-DIV which are also a nominee distribution for which beneficiary will have to include in their 2022 taxes. How can I get to this figure in TT and make the necessary adjustment and notes for IRS?

A

Anonymous_

Employee

I am sorry for your loss. When did your loved one pass away?

Capital gains distributions are typically received in December so if the decedent passed prior thereto, the gains are taxable to the estate (or trust).

C

colorfulcatAuthor

Thank you for replying. Passed in Sept 2021.

Unique situation and I was trying to stay brief. The capital gains are from a TOD account, therefore not included in the estate because it passes directly to beneficiary, who must pay taxes on them on 2022 taxes. I've carefully researched this.

Again, Turbotax lets me divide the dividends distributed after his death from this same fund's 1099-DIV. I must find out how to do so with the capital gains.

(Maybe I'll have to redo it all by hand. I've already spent hours & hours on a Merrill Lynch import issue other community members have documented for years and I couldn't solve either. Phone call to TT was dead end.)

C

colorfulcatAuthor

Maybe I need to ask a more basic question. How do I get to the individual pages of the tax form itself, i.e. the individual schedule pages on Turbotax? I'm hoping I could edit there? Because according to the IRS pub for executors, I'll need to add notes about the divided dividends (explain putting total and subtracting the portion received by beneficiary, arriving at new sum) and now, I'll need to do the same for these capital gains.

Have to find a way forward. 🙂