The reason it was done this way is because she wanted the husband to be responsible for taxes on the proceeds not her. So how should I report this now after the fact? Could I use the K-1 form for the husband assuming that she gave him 25% ownership on the day of the last asset sales? Or report the entire amount to her but this way we’ll be responsible for taxes? What’s the best way to deal with this? Any advice would be greatly appreciated.