Entering backup withholding amount

My wife inherited some stock. I set up an investment account and used "added shares" to put the shares into the account. She then sold the stock so I used "sold stock" to record that. But in the sale, the brokerage made a backup withholding payment to the IRS. I want to enter a "misc expense" for that, but can't find a category (or really, a tax item to assign to a category). I assume the withholding will show up on a 1099-B for 2015. Mainly I like to be able to transfer from Quicken to TTax so I try to use the provided tax items. Or just create a new expense category?
scott s. .
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scott s.
danbrown wrote in news: snipped-for-privacy@googlegroups.com:
The shares were held in certificate form by the decedent. On behalf of the estate, my wife had the company's stock transfer agent re-register the shares in her name in book-order form. The stock transfer agent then sold the shares and forwarded the net (after fees and withholding) to my wife by check. My wife then distributed the gross (after fee) amount to the 5 other heirs of the decedent. I suspect she could have avoided the withholding, but the process to get the shares transferred was so convoluted she just wanted to get it over with (it was the last part of the estate to get settled).
There was also a small capital loss on the sale, based on the valuation on date of death.
scott s. .
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scott s.
AFAIK, this transaction, and any others that pertain to the estate, should be in a separate Q data file ... NOT in your (and wife's) personal file ... because you 2 aren't the sole owners of the security.
Now, to your actual question, when you sold the stock, cash was created in the investment account in Q. So, I'd show the sale for the full amount (mi nus ONLY commissions/fees) and then use a Miscellaneous Expense transaction to record the Backup Withholding (to the appropriate tax category). Then use a "Cash Transferred out of Account" to record the distribution to the h eirs.
NOTE, that these Actions might/might-not be available in your version of Q. If they're not available, write back with your Q product and year and we can figure something else out.
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danbrown
danbrown wrote in news: snipped-for-privacy@googlegroups.com:
This is Quicken Deluxe 2014
Your approach is pretty much what I did, the only thing is I don't see any way to tell Quicken that the "backup withholding" is a tax item. All I can find is withholding on W-2 or 1099-R income.
I note that regardless of ownership, 1099 reporting is using my wife's SSN and my past experience is that it is next to impossible to get a 1099 changed.
But it just seems to me Quicken should have tax items for expense categories for withholding on other 1099 income (that is, other than 1099-R) so that the amounts could import to TTax. Of course I can just manually enter this into TTax.
scott s. .
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scott s.
That Miscellaneous Expense can be assigned to a Category with the appropriate Tax Line assigned.
BTW, will you wife be issuing tax documents to the other heirs, for what they received and their portion of the Withholding (which would, in turn, reduce the amount that she paid).
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danbrown
danbrown wrote in news: snipped-for-privacy@googlegroups.com:
Seems like too much work. We make estimated payments anyway so will just include it in figuring the estimates.
scott s. .
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scott s.

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