HOW DO I ADD A 1099S FORM?

First you nominee any portion of the 1099-S gross proceeds to each beneficiary (see instructions below). Next you will divide the selling expenses three ways to provide an amount for each beneficiary.

Cost basis is the fair market value (FMV) on the date of death of the original owner. Divide this by three. Inherited property is considered to be helf long term and any gain will receive special capital gain tax treatment.

Each beneficiary will enter the sale in TurboTax using their own figures for one third of the sale using instructions below

To enter your sale in TurboTax, follow these steps (you don't actually enter the form). Click this link for more information. Where do I enter Investment Sales?

1. Open or continue your return.
2. Navigate to the investment sales section:
   • TurboTax Online/Mobile: Go to investment sales. If using this application, make sure it is open
   • TurboTax Desktop: Search for investment sales and then select the Jump to link. 
     • Or Personal Tab > Continue > I'll choose what I work on > Scroll to Investment Income > Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other - when asked for the investment type be sure to select 'inherited'
3. Answer Yes to the question Did you sell any of these investments in 2024? (or Okay! to Time to kickoff your investments!).
   • If you land on  the Investment sales summary or Your investments and savings screen, select Add More Sales or Add investments.

Nominee Returns.  This is how the IRS knows what you are doing.

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
• Form 1099-S

@Katiebswt

[Edited: 02/26/2025 | 4:16 PM PST]