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June 6, 2019
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Have both 1099-B & Sch K-1; stock was inherited. On 1099-B, date & cost basis reflects DOD. K-1 Sch has date/ basis at 9 mos later (when Corp updated name). TT entry?

  • June 6, 2019
  • 1 reply
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The stock was inherited in 2016 and sold in 2018. The brokerage house(s)  used the death certificate with date-of-death (DOD) to provide cost basis which was reflected correctly on the 1099-B. However, the physical transfer of the stock ownership via Estate took ~ 9 + months and the Sch K-1 has different acquired dates and cost valuation (based on the acquired date). However, the K-1 does show the stock as "inherited". My sub questions are:

1) How to handle in Turbo Tax entry ???

2) Should I attempt to get the Sch K-1 revised ? (It's correct from the point of view of the company that created the K-1 as to when the stock went into my name and the value at that time).

3) Potential audit triggers?

Best answer by fanfare

The 1099-B is correct.

you can enter either the 1099-B or the K-1 but not both 

Turbotax (and IRS) allows you to adjust a basis to the correct value , if necessary.

1 reply

fanfare
fanfareAnswer
Employee
June 6, 2019

The 1099-B is correct.

you can enter either the 1099-B or the K-1 but not both 

Turbotax (and IRS) allows you to adjust a basis to the correct value , if necessary.

June 6, 2019
I recognize that the 1099-B was/is the correct information. Do you just ignore the fact that you received a Sch K-1 in TT ? Enter nothing at all relative to the Sch K-1 and let the 1099-B stand on its own ?