Question

1099-B form Money received was inheritance but used for estate expenses

Forum|Forum|4 years ago
April 4, 2022
1 reply
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My mother in law passed away in 2014. At the time, we paid for her funeral. We finally settled her estate in 2021 and received a 1099B from the stocks she had. The 1099B amounts were less than the funeral costs. Is this income taxable? If not, how can I report that when filing my taxes? If the income is taxable, is my cost basis $0, so therefore I am responsible for the total sale amount?

Employee

Who received the 1099-B? Was it issued to the estate (in the name of the estate with the estate's EIN) or you, personally?

The basis of the shares would be their fair market value on the date of death of your mother-in-law (in 2014).

Funeral expenses are not deductible on any tax return (except Form 706 which you almost certainly will not have to file).

petepuma02Author

Thank you for the reply. The 1099 is in my wife's name.

Employee

You have to go back and review the stock's high and low prices on the date of death of your mother-in-law in order to figure your basis.