How to you handle a 1099B which is in both party's name that were divorced at the end of 2025?

[dr58lj15]

I have a 1099B that is in a couple's name with both parties on the account.  They were legally divorced at the end of 2025.  The investments were not addressed during their divorce settlement.  The broker indicates they both are equally responsible for 1/2 of the total investments.   Can I divide the dividends, interest, and the Capital gains with 1/2 on the ex-husband's tax return and 1/2 on the ex-wife's tax return?

[jeffmcpa2010]

It sounds like you may be planning to have both of  them as clients?

[Skylane]

It gets handled by nominee. The TP who’s SSN appears reports full proceeds full proceeds and adjusts basis for 50% net of gain/loss. Identify nominee by SSN and name. The other taxpayer reports their 50% proceeds and basis.

[strongsilence]

Can income be split 50/50?  Yes — if substantively correct.

Given:

• Joint account
• Broker states equal ownership
• No divorce allocation

A 50/50 allocation is generally reasonable, absent evidence to the contrary (e.g., separate property contributions, tracing, or state law override).

[BobKamman]

@Skylane That's probably an acceptable shortcut, but it should be noted that IRS instructs the named taxpayer to  file a new Form 1099-B and Form 1096 with the IRS, listing the named payee as the payer and the actual owner as the recipient.

BTW, the word is "whose."

[Skylane]

@BobKamman  The Whos are a species of fuzzy microscopic beings of who come in many different sizes, ranging from tall to small. They all live in the equally microscopic world of Whoville.

[BobKamman]

@Skylane Whoville is not a microscopic world.  My grandson (age 13) is playing the Mayor of Whoville in a production of Seussical the Musical later this month.  In Florence, Oregon.  I am trying to decide whether to go see it, or watch it online and go see his mother receive her PhD at the University of Oregon graduation in June.  

[Skylane]

@BobKamman  Whoville was first discovered by Horton, on a speck of dust…It was later found on a snowflake.
in the late 70s my wife and I stopped in Corvallis for an air show and then spent a couple of days at Gold Beach….Beautiful area of the country…

I'm going to G-sons spring concert to hear his sax solo next Tuesday… taxes be dammed…I hope you can do both.