I tried the nominee input for the dividends but when I enter the amount of dividends to be reported on the 1041 the amount is reduced when it carries over to schedule B. I can't follow the reason why this is happening. It appears to be allocating between ordinary and qualified dividends but the numbers still don't tie back to the amount needed to be reported on F 1041.

Maybe I'm not following you correctly on your Sch D comment. Did you mean to say enter zero as the proceeds and the cost as the amount of gain needed to be reported on the 1041 so that reduces the gain on the 1040 - instead of saying that reduces the gross proceeds on the 1040?

Doing that would you just enter the stock information as usual or also enter on that line that this is being reported to the 1041? That might look weird but at least the IRS will have some idea of what is going on.

Thanks for your help.