edrakin
Level 2

Estate is on a fiscal year ending February 2024. The investments in a brokerage account were sold January 2024. The brokerage will report this on a 1099 that will be mailed out in February 2025. The client would like to close the estate, and this tax return is the last item to address. Can I request statements for the brokerage account and manually calculate and input dividends, interests, and capital gains based on the date of death values compared to the sale proceeds? I wouldn't have the payor's EIN. I'm concerned things would be reported a little differently on the 1099 than I anticipate. I won't know whether the basis is reported to the IRS without the 1099. Is it normal practice to do this without 1099s? Or should this wait until next year, when the 1099 is issued? 

0 Cheers
sjrcpa
Level 15

"Can I request statements for the brokerage account and manually calculate and input dividends, interests, and capital gains based on the date of death values compared to the sale proceeds?" Yes.

Is it normal practice to do this without 1099s? Yes

Besides the covered vs noncovered issue, you won't necessarily know Qualified Dividends. I'll err on the side of caution when underestimating this, unless I know what is Qualified.


Ex-AllStar