"Stuart Bronstein" <spamtrap[at]lexregia.com> wrote in message
news:Xns9A65AB1978902avocatstuyahoofr[at]130.133.1.4...
- quote -

YES, except where another reporting document is used (e.g. 1041 Schedule
K-1).

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"D. Stussy" <spam[at]bde-arc.ampr.org> wrote:
- quote -

The instructions for some 1099's specifically refer to nominees, others
don't. Do you mean to say that all the instructions should have
mentioned nominees because they should all (as appropriate) be filed
by nominees?

Stu

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"Mark Bole" <makbo[at]pacbell.net> wrote in message
news:_pPCj.19884$Ch6.18973[at]newssvr11.news.prodigy.net...
- quote -

The nominee instructions apply to ALL TYPES of 1099, not just the INT and
DIV types whch were used in the example(s).

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D. Stussy wrote:
- quote -

Nominee 1099-INT and 1099-DIV, yes, this is explicitly described in IRS
pubs.

Where is nominee 1099-B described?

-Mark Bole

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"Stuart Bronstein" <spamtrap[at]lexregia.com> wrote in message
news:Xns9A605A5A21433avocatstuyahoofr[at]130.133.1.4...
- quote -

That's what a nominee 1099 is - one prepared by the intermediary.

- quote -

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D. Stussy wrote:
- quote -

I have been searching for some time, well before this thread, on how a
1099-B could be "nomineed", and have never found anything. Now that you
are indicating it should be done, could you please point me to a pub,
reg, or code section where the process of issuing a nominee 1099-B is
described? The instructions for Form 1099-B don't describe use of
1099-B in a situation such as that described above, at least not that I
can find.

It seems to me like the stock ownership should have been handled with
one-half of the shares being transferred to each person, then each would
do whatever they wanted with their inheritance. Given that mistakes
happen and trust terms are not always followed, does the IRS want what
"should have happened" reported and appropriate explanatory statements
attached to returns?

-Mark Bole

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"D. Stussy" <spam[at]bde-arc.ampr.org> wrote:
- quote -

Do you mean a 10-99-B is prepared by the nominee to show how the funds
were actually distributed? That sounds like a better approach than
just attaching a note to the Schedule D.

- quote -

They may not have known. The mother had a green card (and SS#) but
hasn't been to the US in years, so probably lost whatever rights (and
obligations) she had under it. She gave daughter her power of attorney
to deal with her share of the estate.

Stu

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

"D. Stussy" <spam[at]bde-arc.ampr.org> wrote:
- quote -

Thanks, that's interesting information.

- quote -

In essence that's correct. It was all done in the process of dealing
with the estate, though no formal probate was required.

- quote -

The stock was in the name of the father only, and put into the names
of the mother and daughter based on the daughter's sending them a
death certificate and declaration as to who the legal heirs were.
After changing the names, the stock was sold and the proceeds sent.

Stu

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<jmail7[at]andrewmitchel.com> wrote in message
news:fd1c38a5-8f21-4ea1-b35a-8e05cd6b6cc7[at]k13g2000hse.googlegroups.com...
- quote -

But that answer assumes that the stock was sold by the two individuals as
individuals after it was distributed from the estate. However, upon
re-reading, the initial question sounds as if the estate sold the stock and
distributed the proceeds.

What we need to find out is what did the broker have on the account title.
Just because the 1099-B was in the names of the two individuals doesn't mean
that the account wasn't in the name of the deceased or his estate when
actually sold.

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- quote -

Capital gains of non-citizen non-residents are generally sourced based
on the residence of the seller. Code § 865(a). If the mother is a
nonresident alien and she sold stock of a U.S. company, it would not
be U.S. source income. Because it is not U.S. source income, no 30%
tax would be required to be withheld. If tax were required to be
withheld, then the daughter would likely be a withholding agent and
she should have withheld.

I believe that there are exceptions to sending 1099s to nonresident
aliens.

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"Benjamin Yazersky CPA" <byaz55[at]lycos.com> wrote in message
news:ca417145-4df5-4f59-aee1-2d89c5e438e7[at]s19g2000prg.googlegroups.com...
- quote -

Technically, a nominee 1099-B should also be prepared. The mother will need
an ITIN if she doesn't have an SSN.

The broker probably assigned 100% of it to the daughter because it realized
it screwed up and didn't withhold the 30% it should have for income to a
foreign person.

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Mark Bole <makbo[at]pacbell.net> wrote:
- quote -

State law permits transfer without probate if the value of the estate
is under a certain amount. Upon affidavit of the heirs to that
effect, the stock is transferred into the names of the heirs without
court order. Their heirs preferred the cash to the stock.

- quote -

That's part of the question. My guess is that the taxable income
will be small, if there's any at all, due to stepped up basis. But
the decedent was a US citizen and resident, and his assets were all
located in the US. So my guess is that, as far as his wife is
concerned it would be considered US source income.

Stu

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Stuart Bronstein wrote:
- quote -

The last time I checked this (one minute ago), it only applied to
capital gains *distributions*, as reported on a 1099-DIV. I could not
find any IRS pub, including instructions for form 1040 Schedule D that
explained how to "nominee" ownership and sale (1099-B) of a capital
asset such as stock.

Was the stock ownership transferred via a trust or court-supervised
probate? Otherwise, how did someone sell the stock of a decedent?

The case you present is complicated by the non-citizen, non-resident
status of the second beneficiary (Mother). Is she subject to U.S. tax laws?

-Mark Bole

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Benjamin Yazersky CPA <byaz55[at]lycos.com> wrote:
- quote -

Thanks. Based on your clue I went to take a look at the instructions
for Schedule D. It says that someone who receives money as a nominee
for someone else should only include her own portion on her own
Schedule D, and include a separate statement showing who the other
recipient is and how much belongs to her.

Stu

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On Mar 9, 4:37 pm, "Stuart A. Bronstein" <spamt...[at]lexregia.comwrote:
- quote -


Whoever's soc sec # is on the 1099B should report 100% of the proceeds

Then back out the 50% held as nominee



___________________________________
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I was just asked a question and, since I don't do returns, I don't have
an adequate response.

Mother and daughter inherited stock on the death of the father. Mother
is non-citizen, non-resident. When the stock was cashed, the broker
sent a 1099-B in the name of the mother and daughter.

Daughter sent mother's half of the proceeds to her. Does the daughter
need to report this any way when she does her taxes?

Thanks for your insights.

Stu

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >