1099-B Inherited ESPP

Forum|Forum|2 years ago
April 13, 2024
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My husband inherited an ESPP accunt from his sister that we received a 1099-B form. I am using Turbo Tax Home and Business and it states we need to know the cost basis. In trying to figure that out for us it asks which employer is this for and about a W-2, but this is not from either of our employers and we do not have her W-2. It also asks about a form 3922 from when we purchased the stock, and since we do not have that form it goes on to ask # of shares bought? Would that be the total # of shares that he inherited? Is the first day of the offering period and the date purchased the day that his sister died? Are the grant date and purchase date also the date his sister died? Where can I find out the purchase price per share? Thanks.

TurboTax Home & Biz Windows

Best answer by KrisD15

Do not select that this is ESPP, because for you, it isn't.

Now, I am assuming the 1099-B was issued because you sold the stock.

If this was issued to your sister-in-law, she would need to enter the Strike price and her discount.

YOU do not. Inherited property gets a stepped-up basis meaning the basis for you is the Fair Market Value on the date your sister-in-law passed.

If you sold it just after inheriting, you would have no gain, the basis would be the same as the value that you sold it for. You might even have a loss if there were selling fees.

If you held the stock and sold later, your basis is the value on the date of her passing.

Do not answer the questions about Employee Stock Purchase Plan stock for stock that was inherited.

KrisD15Answer