I have client who received $14000 from an annuity when his ex-wife passed because he was the beneficary but he did not keep the money, he gave 1/2 to each daughter. Now he has receivd the 1099R in his name. Is there a way of re issuing 1099s to his daughters for their share of this money or is he one stuck paying the tax?
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It was nice of the father to make a gift to his daughters. But he is liable for the taxes. -
The only time you can nominee income to another person is if the income belongs to that person, such as a joint savings account and the 1099 is only issued to one of the owners.
As the other poster mentioned, if he gave the daughters the money but he was not required to do so, he pays tax on all the income, PLUS he must file a gift tax return if the gift exceeds the annual exclusion amount. In your case, the $7,000 to each is below the gift tax exclusion amount, but if it was $14,000 to each daughter, then he would have had to file a gift tax return.Last edited by Bees Knees; 02-05-2008, 07:45 AM.Comment
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