TOD Account

[Dan A]

I am preparing the final 1040 for taxpayer who died 9/6/07. I received a 1099B from her broker reporting stock sold in October in her "Transfer on Death" account. The cash from the sale was then disbursed to the beneficiary. Shouldn't the 1099B have been issued to the beneficiary? I did see one reference to the situation on a tax accountant's web-site that stated that the sale should be reported on an estate 1041, but I couldn't find any other info.

Thanks for your help

[Julie]

Yes, that belongs on the estate return. The phrase you should be researching is Income in Respect of the Decedent, or IRD. That refers to all the income that comes to the deceased after the date of death. Quickfinder has a short summary on pages 15-2 and 15-3, but it's not as much as you need right now. Is there a lawyer handling the estate? Is he doing the 1041, or are you? If the lawyer is handling the 1041, you don't deal with anything that happens after the date of death. If you're supposed to be doing the 1041, you have about six months to do the research. I suggest you get help.

I am preparing the final 1040 for taxpayer who died 9/6/07. I received a 1099B from her broker reporting stock sold in October in her "Transfer on Death" account. The cash from the sale was then disbursed to the beneficiary. Shouldn't the 1099B have been issued to the beneficiary? I did see one reference to the situation on a tax accountant's web-site that stated that the sale should be reported on an estate 1041, but I couldn't find any other info.

Thanks for your help