Pub 564 states "If you received a capital gain distribution or were allocated an undistributed capital gain as a nominee, report only the amount that belongs to you on line 10 of Form 1040A, line 13 of Form
1040, or Schedule D (Form 1040), whichever is appropriate. Attach a statement to your return showing the full amount you received or were allocated and the amount you received or were allocated as a nominee."
In TurboTax if you enter nominee capital gains as a separate 1099-DIV the statement is created and sent as part of the e-filing. Entering nominee gain as a separate 1099-DIV or 1099-B entry, neither TaxCut nor TaxAct generate the required statement.
The IRS suggested I simply not enter the nominee cap gains, e-file the return, then send the statement with Form 8453-OL so the statement is linked to the electronic return.
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